TN Officials Approve $40M Incentive For LG Chem’s $3.2B Clarksville Facility
Image Credit: Tennessee Department of Economic and Community Development / Facebook
The Center Square [By Jon Styf] –
Tennessee officials approved a $40 million incentive payment for LG Chem, which is planning to spend $3.2 billion to build a new cathode manufacturing facility in Clarksville.
Cathodes are an essential part of the electric vehicle battery supply chain. The facility will be the largest foreign direct investment in Tennessee’s history.
LG Chem committed to creating 860 net new jobs with an average wage of $33.42 per hour for those jobs with the $3.2 billion investment coming within the next eight years.
The proposal was in front of Tennessee’s State Funding Board on Monday, along with a $4 million incentive for Landmark Recovery Management Company LLC in Franklin and a $1.86 million incentive for Gold Creek Foods LLC in Caryville.
The incentive payments all come with agreements from the companies that they will fulfill promises in terms of investments and jobs.
In its recent budget request hearing for next fiscal year, the Tennessee Department of Economic and Community Development requested a budget increase of $202.5 million. Of that, $103 million was requested for FastTrack grants like the one sent to LG Chem. The grants mainly to companies that are moving to Tennessee or expanding in the state.
The LG Chem facility is expected to produce roughly 120,000 tons of cathode material annually by 2027. That material will power batteries in 1.2 million electric vehicles with a range of 310 miles per charge.
The TNEDC did not announce the public incentive payment when it announced the project last week.
“This is a big win for Tennessee and Montgomery County,” TNEDC Commissioner Stuart McWhorter said. “LG Chem’s decision to locate its new cathode manufacturing facility in Clarksville underscores Tennessee’s growing profile as a hub for U.S. and global companies. As we continue our efforts to attract companies in the automotive industry, we are focused on supporting companies that boost Tennessee’s presence in the EV space.
Construction, expected to begin in early 2023, is expected to occur on 420 acres at the Allensworth site in Clarksville. Production is expected to begin at the facility in the second half of 2025.
LG Chem is based in Seoul, South Korea.
Another tax payer hand out to a Multi-Billion dollar company!!
SO VERY TRUE CHINA buying up our farm land, and we sold out our car company’s in the 1970s, bailed out GM when our SORRY GOVERNMENT let every foreign car company company compete with ours. OUR SORRY GOVERNMENT has sold our country out for years, and we do NOTHING ABOUT IT. IT wont be long and we will be a 3rd world country
Here again Lee (Government) partners with business. This is true Marxism. If a business wants to come here let them come. But we the tax payer don’t have to buy them here
ALL they see is TAX DOLLARS they do not care what goes on as long as they get there TAX MONEY