CLARKSVILLE, TN (CLARKSVILLE NOW) – The LG Chem battery materials plant being built in Clarksville has landed its biggest customer yet, signing a nearly $19 billion deal to supply EV battery cathodes to General Motors.
The company recently announced the deal worth $18.61 billion. The South Korea-based company plans to use the Clarksville plant to supply more than 500,000 tons of materials to make cathodes for GM, enough to power about 5 million EVs, LG Chem said in a statement. The deal covers the next 10 years, from 2026 through 2035.
“This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs,” said Jeff Morrison, GM vice president, global purchasing and supply chain, in a statement. “Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”
LG Chem CEO Shin Hak-cheol said in a statement: “By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future. We aim to create unique customer value through world-class productivity and the expansion of our global production bases.”
On Wednesday, the Clarksville-Montgomery County Industrial Development Board voted to accept a $40 million State of Tennessee Fast Track grant on LG Chem’s behalf. The money will pass through to LG Chem.
The $3.2 billion LG Chem project is the second largest industrial investment in state history, bringing 860 jobs, 200 of those paying six-figure salaries. Another 300 spin-off jobs are anticipated. Site development work at the 420-acre site is well under way, EDC official Josh Ward said at Wednesday’s IDB meeting. Production is expected to begin in 2026.