Air Liquide to invest US$150 mn to supply oxygen for LG Chem’s EV plant in US

Air Liquide says it will invest around US$150 million to expand its production capacity and pipeline network in Tennessee, US, in the context of a new long-term contract with LG Chem.

Supplying oxygen to LG Chem’s future cathode active material plant, the group will be supporting the growth of the battery ecosystem in the US. This investment will increase the group’s footprint in a key region and support the development of its Industrial Merchant market.

Air Liquide says it will build and operate a second ASU, liquefier, storage and a pipeline at its Airgas production facility located in Clarksville, Tennessee.

This investment reflects how the Air Liquide group is solidly positioned to accompany its customers in the new Energy Transition markets, including the structurally growing battery manufacturing sector. The number of electric cars globally is expected to more than triple by 2030.

As part of this investment, the expansion of the Airgas facility, first inaugurated in 2013, is expected to be commissioned in 2027. It will produce additional oxygen, nitrogen and argon enabling the group to seize growth opportunities, and ensure a better density coverage of the region with a reliable supply to industrial, healthcare, pharmaceutical, food production, water treatment and other customers throughout Kentucky and Tennessee.

The group will leverage electricity from renewable sources to produce and make low-carbon products available to customers, it adds.

Matthieu Giard, Group Vice President, Americas, said: “Serving a key industry in the energy transition, this investment is in line with the Group’s ADVANCE strategic plan and our commitment to supporting our customers with concrete solutions. This is further recognition of our expertise in the US, where the energy transition is gaining momentum and where we benefit from a solid position, combining both a historic presence in major industrial basins as well as a local anchoring thanks to Airgas. 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 United States. 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.”