LG Energy Solution and GM to Invest Additional 360 Billion KRW in Tennessee Battery Plant, USA

Spring Hill Lithium Battery Plant in Tennessee Increases Production Capacity by 40%

[Image source=Yonhap News]

[Asia Economy Reporter Kwak Min-jae] Ultium Cells, a joint battery company between LG Energy Solution and General Motors (GM) in the United States, will invest an additional $275 million (approximately 359 billion KRW) in Tennessee, USA.

According to the AP News on the 2nd (local time), the reason for Ultium Cells' additional investment is to increase the production capacity of the lithium battery plant to be built in Spring Hill, Tennessee by about 40%. Previously, Ultium Cells had planned to invest $2.3 billion (approximately 3 trillion KRW) to build the Spring Hill plant.

Ultium Cells plans to build lithium battery plants in four locations, including Michigan and Ohio, in addition to Tennessee.

Separately from the joint venture with GM, LG Chem plans to invest more than $3 billion (approximately 3.9 trillion KRW) independently to build a plant in Clarksville, Tennessee, securing an annual production capacity of 120,000 tons of cathode materials. This capacity is enough to produce batteries for about 1.2 million high-performance electric vehicles annually, making it the largest scale in the United States.

The Tennessee cathode material plant will begin construction in the first quarter of next year and start mass production by the end of 2025.