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Oct 18, 2024

Air Liquide to Provide Oxygen to LG Chem for U.S. Electric Vehicle Battery Plant

Air Liquide is set to invest approximately $150 million to expand its production capacity and pipeline network in Tennessee, United States, under a new long-term agreement with LG Chem. This

Air Liquide is set to invest approximately $150 million to expand its production capacity and pipeline network in Tennessee, United States, under a new long-term agreement with LG Chem. This investment is aimed at supplying oxygen to LG Chem's upcoming cathode active material (CAM) plant, which will play a critical role in the production of lithium-ion batteries for electric vehicles. The move supports the growing battery ecosystem in the U.S. while also strengthening Air Liquide's presence in the region and boosting its Industrial Merchant market.

LG Chem’s new demand for oxygen for its CAM manufacturing plant has prompted Air Liquide to build a second air separation unit (ASU), along with a liquefier, storage, and pipeline infrastructure at its existing Airgas production facility in Clarksville, Tennessee. With an investment of $150 million, Air Liquide will own and operate the expanded facilities. This project underscores the company’s strong position in supporting its customers, particularly in energy transition sectors like battery manufacturing, which is experiencing rapid growth. By 2030, the global number of electric vehicles is expected to more than triple, highlighting the significance of this investment.

The expansion of the Airgas facility, originally inaugurated in 2013, is expected to be operational by 2027. It will enable the production of additional oxygen, nitrogen, and argon, positioning Air Liquide to capitalize on growth opportunities while ensuring a stable supply to customers across industries like healthcare, pharmaceuticals, food production, and water treatment in Kentucky and Tennessee. Additionally, the company plans to utilize renewable energy sources to power the facility, producing low-carbon products that align with its sustainability goals.

Matthieu Giard, Group Vice President for the Americas at Air Liquide, highlighted that the investment is aligned with the company's ADVANCE strategic plan and its dedication to supporting customers with tangible solutions. He noted that this investment also acknowledges Air Liquide's expertise and strong market position in the U.S., particularly in energy transition sectors. Through the long-term contract with LG Chem, Air Liquide will actively contribute to the evolving battery ecosystem in the country. Moreover, the expanded Airgas facility will more than double the production of liquid nitrogen, oxygen, and argon, enabling the company to meet the growing demand from its merchant customers in Tennessee and surrounding states.

Air Liquide is a global leader in gases, technologies, and services for industry and healthcare, operating in 60 countries with a workforce of 66,300 employees. The company serves over 4 million customers and patients worldwide. Essential molecules like oxygen, nitrogen, and hydrogen, which are fundamental to life, matter, and energy, have been central to Air Liquide’s activities since its founding in 1902.