LG Chem begins construction of cathode plant in US

LG Chem Vice Chairman Shin Hak-cheol, fifth from left, and Tennessee Governor Bill Lee, sixth from left, shovel dirt with other participants at a groundbreaking ceremony for the Korean company's cathode materials plant in the U.S. state's city of Clarksville, Tuesday (local time). LG Chem said the factory will start producing cathode materials optimized for North American electric vehicles in 2026. Courtesy of LG Chem

LG Chem, Korea's leading chemical firm, said Wednesday it has started the construction of a 1.8 trillion-won ($1.4 billion) cathode plant in the United States to meet the rising demand for electric vehicles (EVs).

LG Chem's 60,000-ton-a-year cathode plant will start production in 2026 with an aim to supply the key battery component to clients in the U.S., the world's most important automobile market, the company said in a statement.

Cathodes consist of nickel, cobalt, manganese and aluminum. The quality and content of these minerals in lithium-ion battery cells and the manufacturing technology determine the capacity and life of an EV.

On Tuesday (U.S. time), the company held a groundbreaking ceremony for the cathode plant in Clarksville in the southeastern state of Tennessee.

"We are aiming to emerge as the No. 1 cathode supplier in the U.S. market by providing a differentiated value to our customers there," LG Chem Vice Chairman and CEO Shin Hak-cheol said in the statement.

LG Chem has already secured two major cathode supply deals with General Motors and Toyota Motor.

Last year, LG Chem signed a long-term deal to supply 950,000 tons of cathodes to GM plants. In October this year, it inked a 2.9 trillion-won contract with Toyota to provide cathodes to the Japanese carmaker's U.S. plant, the statement said. (Yonhap)