CLARKSVILLE, TN (CLARKSVILLE NOW) – LG Chem recently announced a $3.2 billion cathode manufacturing plant in Clarksville, bringing in 860 new jobs, with approximately 200 of them paying more than $100,000 per year.
With that announcement, a couple members of the Industrial Development Board recently spoke with Katie Gambill and Charlie Koon on Clarksville’s Conversation about the impact of the project on Clarksville. Here are the top five things to know about the plant.
1. Size and location
LG Chem, a South Korea-based company, is building on the 420-acre Allensworth Farm property in Montgomery County, just east of Exit 4 of Interstate 24.
“The Clarksville-Montgomery County Industrial Development Board just landed the largest foreign direct investment in state history. That is LG Chem. They make cathode material for electric vehicle batteries,” said Josh Ward, director of Economic Development.
The plant, which will create a key component for electric vehicle batteries, will be the largest of its kind in the United States, with a production target of 120,000 tons of cathode material annually by 2027.
2. Higher wages
The plant will create 860 jobs, with starting pay at $24 an hour. About 200 of those jobs will pay over $100,000 per year, according to the EDC. Pay ranges like that could have a ripple effect across Montgomery County’s work force.
“As we start bringing in companies that are at $23 or $24 an hour starting out, other companies are going to have to evaluate their pay scale in order to retain those types of people, and that’s not always a bad thing,” Ward said. “We work for the people. We want to add quality of life to the citizens of Clarksville-Montgomery County.”
While LG Chem is a big business project, it will also have benefits for smaller businesses. Ward explained that officials support the industries because they support the people.
“There is a narrative that we’re only in it for the big businesses and that somehow, we’re incentivized to do good for the big companies and not for the people, and that’s just not true. We want to add disposable income to the community so that they can go spend money, go to restaurants and go shopping to create economic development throughout Clarksville.”
3. Local partnerships
Workforce Development coordinator and 27-year military veteran Chris Self said officials are looking to recruit from inside and outside of Clarksville, including military personnel.
“The idea is, we want to get those soldiers, we want them to stay here in Clarksville. They’re not looking for jobs; they’re looking for their next careers as they transition out, and I think this is a good opportunity for them.”
Self also noted that officials are also seeking to keep the commuters here in Clarksville.
“We want to recruit those 10,000 people that commute to Robertson and Davidson counties every day for their jobs. If they’re driving all the way to Davidson County for a job that pays less than $50,000 a year, they’re losing money, so we’re going to recruit them. Those folks are already here.”
Another aspect of these recruitment partnerships will center on education and training for the in-demand jobs that will be created.
“We’re going to get LG Chem partnered up with major educational players in Clarksville: APSU, Nashville State Community College Clarksville and TCAT. They’re going to need to work with those educational institutions to develop training programs to meet the specialized needs that they’re going to have for that workforce,” Self said.
4. Tax revenue
Economic leaders agree that tax revenue generated from the project will bring in a slew of benefits for Montgomery County.
Ward explained that when it comes to growth, there are usually two groups of people: those who wish to see it and those who do not.
“We believe that growth can be a good thing if you do it right,” he said. “The amount of tax revenue that this $3.2 billion investment is going to make is going to help us do the community improvements that we’re looking for: improve roads, improve infrastructure, improve schools, improve everything.”
Clarksville Now has reached out to the EDC for details on the tax incentives that LG Chem has been offered.
5. American made
This project will also contribute to domestic car manufacturing. While LG Chem is headquartered in South Korea, the products that are produced from the Clarksville plant will be used in American manufacturing processes.
“The exciting thing about this company is that they’re connected to American automotive original equipment manufacturers. So, they’re going to supply to General Motors (GM) and Cadillac as they ramp up their electric vehicle production,” Ward said.
Construction of the plant will begin in the first quarter of 2023, with mass production to start in the second half of 2025.