CLARKSVILLE, TN—LG Chem plans to build a $3.2 billion factory here to make components for electric vehicle batteries.

The facility will be the largest of its kind in the United States and represents the single-largest foreign investment in Tennessee’s history. It is expected to create 860 new jobs.

Construction is slated to begin in early 2023.

According to LG Chem, it chose the location “due to its proximity to key customers, ease of transporting raw materials and active cooperation of the state and local governments.” The company noted it envisions the site being “the supply chain hub where material and recycling partners work together to supply global customers.”

The plant is expected to begin production in the second half of 2025 and produce roughly 120,000 tons of cathode material annually by 2027. That’s enough to power batteries in 1.2 million EVs with a range of 310 miles per charge.

The announcement comes on the heels of Ascend Elements’ groundbreaking in nearby Hopkinsville, KY, at the site of what will be the company’s largest EV battery recycling and manufacturing facility. The $1 billion plant will be the largest-ever economic development project in Western Kentucky and is projected to create approximately 400 jobs.

The plant will produce enough cathode materials to equip up to 250,000 EVs annually.