Air Liquide will invest $150m in a new air separation unit (ASU) in Tennessee to supply oxygen to LG Chem’s future cathode active material plant as part of a newly signed contract.
Announced today (15th Oct), the deal expands the industrial gas giant’s production capacity and pipelines in the US state and supports its industrial merchant market business.
Air Liquide will build, own, and operate the ASU at Airgas’ production facility in Clarksville. It will be the second ASU at the side, with the first opening in 2013. The new plant is expected to be commissioned in 2027.
Cathode active materials (CAMs) are a key component of batteries. LG Chem’s new plant will produce lithium-ion electric vehicle batteries to meet demands.
In addition to supporting the LG Chem contract, oxygen, argon, and nitrogen produced at the ASU will also support the wider industrial, healthcare, pharmaceutical, food production, and water treatment markets in the region.
Matthieu Giard, President of the Americas at Air Liquide, said the investment is in line with the group’s ADVANCE strategic plan and its commitment to supporting customers with concrete solutions.
Read more: Air Liquide publishes strategic plan for 2025; sustainable development a key focus
“As part of the long-term contract signed with LG Chem, we will be putting our solutions at the service of the battery ecosystem in the US,” he added.
“Additionally, through this investment, Airgas will more than double its local liquid nitrogen, oxygen, and argon production, which will enable us to support the increasing demand from merchant customers in Tennessee and surrounding states.”
Air Liquide will utilise electricity from renewable sources to power the new plant.
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