LG Chem announced on Dec. 13 that it will hold a groundbreaking ceremony for the largest anode material factory in North America on Dec. 19 in Clarksville, Tennessee. This comes 13 months after signing a memorandum of understanding (MOU) with the state of Tennessee for the construction of the anode material factory.
The annual production capacity of this factory is 120,000 tons, enabling the production of anode materials for high-performance electric vehicle batteries, equivalent to 1.2 million units. It is the largest single-factory facility in North America. The construction of the factory, covering an area of 1.7 million square meters, involves a total investment of US$3.2 billion. The plan is to start with an annual production of 60,000 tons in the first phase from 2026 and gradually increase the production volume.
Tennessee is home to a joint battery factory operated by General Motors (GM) and LG Energy Solution. The anode materials to be produced at LG Chem’s Tennessee plant are expected to be primarily supplied to GM with whom a contract has been previously signed. The Tennessee facility will focus on producing high-nickel-type nickel–cobalt–manganese-aluminum (NCMA) anode materials for next-generation electric vehicle batteries, a technology strongly promoted by LG Chem. The NCMA-based anode materials are characterized by LG Chem’s material technology, enhancing safety while increasing the nickel content that determines energy density. LG Chem plans to leverage smart factory technology, implementing automation in all production processes, establishing quality analysis and management systems, and advancing overall factory operations.
LG Chem achieved 5 trillion won in revenue in the battery and materials business, including anode materials, last year. It plans to boost its annual revenue to 20 trillion won by 2027, leveraging its new factory in the United States. Earlier, LG Chem secured a supply contract with Toyota’s North American subsidiary for anode materials worth 2.8 trillion won until 2030.