CLARKSVILLE, Tenn. (AP) — Tennessee officials on Monday announced plans to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.
The manufacturing facility will be built in Clarksville and create more than 850 jobs, according to a memorandum of understanding signed by the state of Tennessee and South Korea-based LG Chem.
"LG Chem's decision to invest $3.2 billion in Clarksville is a testament to Tennessee's unmatched business climate, skilled workforce and position as a leader in the automotive industry," Gov. Bill Lee said in a statement.
Officials say the facility will help support the electric vehicle battery value-chain across the United States. Construction will begin next year, with the goal to start mass production in 2025. Once operational, the goal is to produce 120,000 tons of cathode battery materials annually — or enough to power 1.2 million electric vehicle batteries.
"The new cathode manufacturing facility in Tennessee brings us one step closer to becoming the world's best battery materials manufacturer and fulfilling our corporate vision to become a top global science company," said LG Chem CEO Shin Hak-Cheol in a statement. "This site will be the North American manufacturing center of excellence for the cathode supply chain and lead to the creation of many well-paying jobs, contributing to the local economy in Clarksville."
Across Tennessee, companies have invested $12.7 billion in the state through EV-related projects since 2017.