TechLG Chem to spend $3.2 billion on cathode plant...

LG Chem to spend $3.2 billion on cathode plant in the US for EV batteries

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Tesla is a key buyer of EV battery maker LG Vitality Answer. Picture: Tesla

Tesla

LG Chem, the father or mother firm of electrical car (EV) battery maker LG Vitality Answer, mentioned on Tuesday that it’ll spend $3.2 billion to construct a cathode manufacturing plant in Tennessee.

The plant at Clarksville is aimed to have, by 2027, a yearly output of 120,000 tones of cathode, arguably an important materials used within the manufacturing of an EV battery that determines its efficiency and value.

LG Chem mentioned the brand new plant would be the largest of its form within the US, taking over 420 acres of area. Building will begin early subsequent 12 months with mass manufacturing slated to start in 2025.

Tennessee was the only option on account of its proximity to key prospects, the corporate mentioned. Although LG Chem did not formally say so, it’s possible constructing the plant to service its subsidiary LG Vitality Answer.

Tennessee is the place Ultium Cells, the battery three way partnership between LG Vitality Answer and Common Motors, is constructing its EV battery manufacturing plant in Spring Hill. The enterprise can also be constructing an EV battery manufacturing plant in Lordstown, Ohio.

LG Vitality Answer additionally introduced in August that it’ll type a three way partnership with Honda to construct an EV battery manufacturing plant within the US. The pair are planning to spend $4.4 billion on the undertaking.

The pandemic has elevated worries over potential provide chain disruption whereas the costs of uncooked materials equivalent to nickel utilized in EV batteries has gone up in recent times. The US has additionally introduced varied insurance policies to construct its personal provide chain regionally for merchandise equivalent to chips and batteries. Compatriot EV battery maker SK Innovation can also be constructing a battery manufacturing plant in Tennessee with Ford. It is usually planning to construct a plant by itself in Georgia.

The Tennessee facility will permit LG Chem to proactively handle the altering dynamics of the worldwide battery materials market and with laws such because the Inflation Discount Act, the South Korean chemical big mentioned. The plant will manufacture superior NCMA cathode supplies the corporate mentioned. NCMA means the cathode is comprised of nickel, cobalt, and manganese in addition to aluminum.

Cathode makers like LG Chem try to extend the quantity of nickel used to extend the vitality density of EV batteries. LG Vitality Answer is the world’s second-largest EV battery maker after China’s CATL and provides batteries to US automobile makers Tesla and Common Motors and different auto giants.

In Might, LG Vitality Answer additionally introduced that it’ll spend $4.1 billion with automobile maker Stellantis to construct a battery manufacturing plant in Ontario, Canada.

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