Air Liquide is set to invest approximately $150 million to expand its production capacity and pipeline network in Tennessee, as part of a new long-term agreement with LG Chem. The investment will support LG Chem’s upcoming cathode active material plant, which will produce lithium-ion batteries for electric vehicles, thereby contributing to the growth of the U.S. battery industry. This expansion will strengthen Air Liquide’s presence in a key market and boost its Industrial Merchant business.
To meet LG Chem’s need for oxygen at the future manufacturing facility, Air Liquide will construct, own, and operate a second air separation unit (ASU), along with a liquefier, storage, and a pipeline at its Airgas facility in Clarksville, Tennessee. This facility, originally launched in 2013, will undergo expansion and is expected to be operational by 2027.
The investment demonstrates Air Liquide’s commitment to supporting customers in energy transition markets, especially the rapidly growing electric vehicle battery sector, which is projected to more than triple in electric vehicle numbers globally by 2030.
The expanded facility will produce additional oxygen, nitrogen, and argon, allowing Air Liquide to capitalize on growth opportunities and provide reliable supply to a range of industries, including healthcare, pharmaceuticals, food production, water treatment, and more across Kentucky and Tennessee. The company will use renewable energy sources to produce low-carbon products for its customers.
