Summary
- Air Liquide to invest $150 million in Tennessee for expanding production capacity and pipeline network
- Second air separation unit (ASU), liquefier, storage, and pipeline to be built at Airgas facility in Clarksville
- Investment aimed at meeting requirements of LG Chem’s new manufacturing plant for cathode active material
- LG Chem’s first phase plant expected to be operational in 2026 with an annual capacity of 60,000 tons of cathode materials
- Investment will also double local liquid nitrogen, oxygen, and argon production to meet increasing demand in Tennessee and surrounding states.
Article
French industrial gas supplier Air Liquide has announced plans to invest approximately $150 million to expand its production capacity and pipeline network in Tennessee. This decision comes after the company signed a new long-term contract to supply oxygen to South Korean chemical producer LG Chem. As part of the expansion, Air Liquide will build, own, and operate a second air separation unit, liquefier, storage facility, and pipeline at its Airgas production facility in Clarksville, Tennessee. The new infrastructure is expected to be commissioned in 2027 and will support LG Chem’s planned manufacturing plant for cathode active material (CAM) used in lithium-ion electric vehicle (EV) batteries.
The investment by Air Liquide will enable the company to significantly increase its production capacity of oxygen, nitrogen, and argon, which will in turn support LG Chem’s growing demand for oxygen as well as the needs of other merchant customers in Tennessee and surrounding states. The expansion project will also provide additional benefits to the battery ecosystem in the US and help meet the increasing demand for high-performance EVs. LG Chem’s first phase of the plant, with an annual capacity of 60,000 tons of cathode materials, is scheduled to be commissioned in 2026 and is expected to supply CAM for approximately 600,000 EVs.
Matthieu Giard, Group Vice President of the Americas at Air Liquide, emphasized the company’s commitment to supporting the battery ecosystem in the US through its long-term contract with LG Chem and the investment in expanding its production capacity in Tennessee. The $150 million investment will play a crucial role in meeting the requirements of LG Chem’s manufacturing plant and providing the necessary infrastructure for the production of cathode active material for lithium-ion EV batteries. This strategic move by Air Liquide demonstrates its dedication to meeting the evolving needs of the market and supporting the transition to renewable energy technologies.
In addition to supplying oxygen to LG Chem’s manufacturing plant, Air Liquide’s expanded production capacity in Tennessee will also cater to the growing demand from other merchant customers in the region. The investment in doubling the production of liquid nitrogen, oxygen, and argon will not only support LG Chem’s requirements but also serve the needs of various industries in Tennessee and neighboring states. By enhancing its infrastructure and capacity, Air Liquide aims to strengthen its position as a leading industrial gas supplier in the region and contribute to the development of the battery ecosystem in the US.
The expansion project in Tennessee reflects Air Liquide’s strategic vision to align its operations with the evolving needs of the market and support the transition to sustainable energy solutions. By investing in new infrastructure and production capacity, the company can meet the increasing demand for industrial gases from key customers like LG Chem and other merchant customers. The long-term contract signed with LG Chem underscores Air Liquide’s commitment to providing innovative solutions to support the battery ecosystem in the US and contribute to the growth of the electric vehicle market. Overall, the investment in Tennessee represents a significant step towards achieving these goals and solidifying Air Liquide’s presence in the region.
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