US-based EV battery projects multiply after the White House subsidy ask as LG plans new Tennessee cathode factory for GM

LG is planning to build another battery factory in the US, reports Korean media, this time for producing high-end cathode material such as precursors. Those that go into cathode production constitute roughly 40% of a battery cost, so LG is aiming to produce the raw cathode materials on its own, as it has several other battery projects in the US for complete packs, too.

Besides being one of the key Tesla battery suppliers with an eye on the 4680 cell prize, LG is also contracted to serve Ford, General Motors, or Volkswagen's EV ambitions. According to the recent Inflation Reduction Act government EV subsidy requirements not only vehicle or battery assembly, but also electrode materials have to be sourced from the US or nations that the US has free trade agreements with, in an apparent effort to exclude the biggest battery or materials provider, China.

The big three South Korean battery makers - LG, Samsung, and SK On - all have battery joint ventures with US automakers, and are frantically looking to expand their factory projects on US soil in order to comply with the federal requirements for obtaining the US$7,500 subsidy per new electric car that will run until 2032. They have reportedly even started cleaning up their supply chain from battery raw materials sourced from China, and LG's planned cathode factory project named Columbus is a further step in that direction.

LG will allegedly be making high-nickel cathode material for performance electric vehicles there, with up to 120,000 tons production capacity when the Columbus project is completed. LG already has a US$2.3 billion cell factory in the works at the Tennessee location, aimed mainly towards fulfilling the contract with General Motors over its Ultium EV platform batteries, and the high-nickel cathode material may very well end up there, too.

When asked to comment, LG confirmed that "considerations for investment in cathode materials in North America are in progress, and final discussions with customers and related organizations on site, capacity, investment cost, volume, etc. are in progress."

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