LG Chem to build $3.2B cathode plant in Clarksville
LG Chem of South Korea announced plans to build a $3.2 billion cathode plant in Clarksville to supply electric vehicle makers in Tennessee and elsewhere. The new facility is projected to create 860 jobs in Montgomery County.
Here’s the release from Gov. Bill Lee’s office:
NASHVILLE, Tenn. – Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Stuart McWhorter and LG Chem officials today announced the company’s plan to invest approximately $3.2 billion to establish a new cathode manufacturing facility in Clarksville, Tennessee, which will support the electric vehicle battery value-chain in the U.S.
LG Chem’s anticipated investment of approximately $3.2 billion represents the single largest announced foreign direct investment in Tennessee’s history. The project is expected to create 860 new jobs in Montgomery County.
The Clarksville facility will be the largest of its kind in the U.S. and is expected to produce roughly 120,000 tons of cathode material annually by 2027, which is enough to power batteries in 1.2 million electric vehicles with a range of 310 miles per charge.
The current plan is for the state-of-the-art facility to be constructed on 420 acres at the Allensworth site in Clarksville. Construction is slated to begin in Q1 2023, and the plant is scheduled to be in production by the second half of 2025. Once operational, the facility will produce cathode materials, which are one of the most critical ingredients for manufacturing electric vehicle batteries.
The Tennessee site will play a critical role in LG Chem’s strategy to increase its battery materials business by producing advanced NCMA cathode materials containing nickel, cobalt, manganese and aluminum for next-generation EV batteries with improved battery capacity and stability.
In addition, the Clarksville facility will feature LG Chem’s most advanced production technology, including the ability to produce more than 10,000 tons of cathode material per line, the industry’s highest. LG Chem also plans to implement its smart factory technology in Tennessee to automate the entire production process and establish a quality analysis and control system that will be the benchmark for all other cathode plants in the world.
The new facility will be designed with the environment and future needs of clean energy in mind. LG Chem will collaborate with power suppliers in Tennessee to respond to the demands of customers, including battery and electric vehicle manufacturers, for more renewable energy sources. Operation of the new facility will rely completely on renewable energy provided by solar and hydroelectric power.
Founded in 1947 and headquartered in Seoul, South Korea, LG Chem is a leading chemical and science-oriented company focused on moving toward a more sustainable future. LG Chem has nearly 19,000 employees across more than 50 global business sites, and in 2021, had sales of more than $37 billion.
South Korea is one of Tennessee’s top 10 countries for foreign direct investment. There are approximately 20 Korean-based establishments that have invested $2.3 billion and employ more than 3,500 people across the state. LG Chem’s $3.2 billion investment will more than double the investments made by South Korean-based companies.
LG Chem’s significant investment and job creation contribute to Tennessee’s continued growth in electric vehicle manufacturing. Since 2017, companies have pledged to create more than 11,000 new jobs and invested $12.7 billion in the state through EV-related projects. In addition, more than 180,000 electric vehicles have been produced in Tennessee since 2013, which ranks the state No. 1 in the Southeast for electric vehicle manufacturing.
Ford picks Memphis Regional Megasite for $5.6B electric vehicle and battery plant
Ford is announcing plans to build a $5.6 billion electric vehicle and battery manufacturing facility on the sprawling Memphis Regional Megasite. The Dearborn, Mich-based automaker said the project dubbed Blue Oval City will create nearly 6,000 jobs.
Gov. Bill Lee said he will call a special session in the coming weeks for lawmakers to approve a $500 million incentive package for the project slated to comprise nearly all of the 6.5-square-mile site in Haywood County. Lee noted that Tennessee will join Indiana as the only states where four auto companies produce vehicles. The Volunteer State’s existing manufacturers, General Motors, Nissan, and Volkswagen also have made heavy investments in electric vehicles.
Ford plant is projected to start assembling electric F-Series trucks in 2025 and the joint venture with South Korea’s SK Innovation is slated to begin making batteries there the same year. Company officials say it is Ford’s first all-new plant to be commissioned since 1969.
The ongoing development of the megasite has been a subject of a yearslong debate among lawmakers and politicians, some of whom have complained it was too big, remote, and expensive. According to an outside study previously commissioned by the Lee administration, 18 prospects had considered — but decided against — the megasite, including five original equipment manufacturers, five battery or stored energy companies, six tiremakers, one data center, and an appliance manufacturer.
Here’s the full release from Ford:
Continue readingReport ranks Tennessee 20th for transportation electrification (UPDATED)
While automakers with assembly plants in Tennessee are ramping up plans to churn out more electric vehicles, the state is receiving middling grades for policies promoting zero-emissions transportation.
According to the report released by the American Council for an Energy-Efficient Economy, Tennessee ranks 20th in the country. Top-rated California received 91 out of 100 possible points, followed by New York (64.5 points), the District of Columbia (59 points), Maryland (56 points) and Massachusetts (54.5 points).
Tennessee received 30.5 points on the group’s scale, placing it behind Virginia (36 points) and North Carolina (31.5 points) in the Southeast.
Tennessee was awarded seven of 17 possible points for planning an goals, 9.5 of 30 for incentives for electric vehicle deployment, one of 12 for transportation system efficiency, 5.5 of 10 for electric grid organization, two of 10 for equity, and 5.5 of 21 for outcomes.
UPDATE: The state and the Tennessee Valley Authority on Wednesday announced a partnership to develop a statewide electric vehicle fast-charging network. Under the agreement, charging stations will be located every 50 miles along interstates and major highways.
The full release follows.
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