LG Chem said on Tuesday that it will spend over 4 trillion won to build a cathode factory in the US.
The company is aiming to secure an annual production capacity of 120,000 metric tonnes by 2027 for the factory that will be built in Clarksville, Tennessee.
LG Chem said the annual amount is enough to manufacture batteries for 1.2 million electric vehicles that can travel over 500km per charge.
The project, internally called Columbus, will see the company build the factory in a space of 1.7 million meter square.
Tennessee is also home to a factory run by Ultium Cells, the joint venture between General Motors and LG Energy Solution. LG Energy Solution is the electric vehicle battery manufacturing subsidiary of LG Chem.
LG Chem said the new factory in Tennessee will manufacture NCMA (nickel, cathode, manganese, and aluminum) cathode.
The South Korean firm said it will also use a local power utility, as customers are requesting it uses renewable energy in its production.
The Tennessee factory will run completely on renewable energy, LG Chem said.
LG Chem is likely to get tax benefits from the Inflation Reduction Act which will take effect in the US soon.
