LG Chem To Build Supply Chain Hub in Tennessee

South Korean company LG Chem is investing $3.2 billion to build an electric vehicle battery cathode manufacturing facility in Clarksville, Tennessee.

120,000 tons of cathode material will be produced annually at the facility to supply enough lithium-ion battery cell for 1.2 million electric cars.  The facility will also serve as a supply chain hub where material and recycling partners come together to supply global customers.

Video Spotlight:  

• LG Chem to build 1st U.S. cathode material plant in Tennessee (Nov 22, 2022, Arirang News)

This post is based on the Inside EVs article, LG Chem To Build Largest Cathode Manufacturing Facility In US, by Mark Kane, November 22, 2022; the Buzz EV News  article, LG Chem to establish new Tennessee cathode plant, by David Sickels, December 28, 2022; and the YouTube video in the Spotlight. Image source: Ajamal/Shutterstock

Discussion Questions:

1.  What location factors did LG Chem consider, in deciding to build a manufacturing facility in Clarksville, Tennessee?

Guidance: Location factors considered by LG Chem include proximity to customers, ease of transportation of raw materials, the cooperation of state and local governments, and favorable legislation such as the Inflation Reduction Act.

2. What role does LG Chem’s cathode manufacturing facility play in the EV supply chain?

Guidance: LG Chem’s cathode manufacturing facility will serve as a cathode supply chain hub for lithium-ion battery materials and battery recycling partners who work together to supply global electric car manufacturers.