SEOUL - LG Chem Ltd., a leading chemical company in South Korea, revealed plans on Friday to invest an initial 938.5 billion won (approximately US$725 million) in its U.S. subsidiary responsible for constructing a cathode plant. This development comes as part of the company's strategy to meet the growing demand for electric vehicles (EVs).
According to Yonhap News Agency, The firm is set to host a groundbreaking ceremony next week for the cathode production facility, which carries a total investment value of 1.8 trillion won. The plant, located in Clarksville, Tennessee, is strategically positioned to capitalize on the increasing demand in the EV sector. A spokesperson for LG Chem stated that further details regarding the plant's completion timeline and other specifics will be announced on Wednesday.
Cathodes are crucial components in lithium-ion battery cells, comprising nickel, cobalt, manganese, and aluminum. The performance and longevity of an EV battery are significantly influenced by the quality and composition of these minerals, as well as the sophistication of the manufacturing technology used.