NASHVILLE (AP) — A Tennessee panel on Monday approved a $40 million state economic incentive for a company that plans to invest $3.2 billion to develop a cathode materials plant for electric vehicle batteries.
The State Funding Board cast the vote to sign off on the FastTrack grant for LG Chem.
The manufacturing facility will be built in Clarksville, Tennessee, and create 860 jobs. The new Tennessee positions for the Seoul, South Korea-based company will pay about $33 an hour on average.
Construction will begin next year, with the goal to start mass production in 2025.
Once operational, the goal is to produce 120,000 tons of cathode battery materials annually — or enough to power 1.2 million electric vehicle batteries.
The state incentives will support construction costs, among other expenses, for the facility. The company has committed to create the new jobs and make the $3.2 billion investment within eight years.
Across Tennessee, companies have invested $12.7 billion in the state through EV-related projects since 2017.