CLARKSVILLE, TN (CLARKSVILLE NOW) – A company that produces electrolytes used in lithium batteries will open a $70 million manufacturing plant in Clarksville, providing 68 jobs that pay $55,000 to $150,000 per year.
Gov. Bill Lee and Dongwha Electrolyte USA Inc. officials announced today that the company will establish manufacturing operations in the U.S., locating its first facility here.
Dongwha Electrolyte’s Clarksville operations will better position the company to serve electric vehicle lithium battery producers across the Southeast while also supporting its growing customer demand for electrolyte and other electronic materials, the release said.
Supply chain for EV industry
EV battery manufacturing is ramping up in Clarksville, with big announcements already from LG Chem and Microvast. Dongwha Electrolyte will be a supplier to Blue Oval City (Ford) SK Inc., Ultium Cells and LG Chem, said Buck Dellinger, CEO, Clarksville-Montgomery County EDC.
“The EDC is pleased to fulfill our goal of providing high-paying career-producing jobs. These jobs are an opportunity for our transitioning military and our emerging workforce,” Dellinger said
“They will be a key component in EV battery production in support of LG Chem,” said Montgomery County Mayor Wes Golden. “We look forward to welcoming them, their families, and their involvement in Montgomery County.”
Dongwha Electrolyte’s investment will further strengthen Tennessee’s position as a leader in the electric vehicle industry. Since 2017, companies have pledged to create more than 12,000 new jobs and invested approximately $16 billion in the state through EV-related projects.
“We are enthusiastic to participate in this journey of achieving 50-percent of electric vehicle shares by 2030 together with our customers in North America,” said SiJoon Lee, group CEO of Dongwha Electrolyte USA Inc. “The 80,000 tons of electrolyte capacity will provide the best electrochemical technologies into the market to achieve this goal. We appreciate the strong support from the State of Tennessee and Montgomery County to realize this investment.”
Location for new plant
Shea Hopkins, executive director of the IDB, previously said the factory, then called Project Atlantic, will be built on Site 9 of the industrial park. Hopkins told the board the company has qualified for a Tier 3 10-year PILOT featuring a 31% tax discount over the term.
“They will be generating over $3 million in estimated tax revenue in the first 10 years even with this PILOT,” she said at the meeting. “We’ll start seeing tax revenue from this project in year one.”
“This project brings more than jobs; Dongha Electrolyte is committed to providing dedicated training and building career paths with high-quality wage opportunities,” Hopkins said Monday.
The IDB previously announced that the jobs will pay $55,000 to $150,000 per year, and that the factory will be a supplier for LG Chem.
“More than 60 jobs, paying a high wage will help our citizens take care of their families,” said Clarksville Mayor Joe Pitts. “We look forward to a long and productive relationship with this company and know they will be very successful here.”
South Korean companies have invested $5.4 billion and employ more than 6,600 people across the state.
Since 2019, TNECD has supported nearly 20 economic development projects in Montgomery County, resulting in approximately 3,800 job commitments and $4.4 billion in capital investment.
Jake Foster contributed to this report.