Crédit Agricole CIB supports LG’s electric vehicle materials production in the United States

Crédit Agricole CIB has supported LG Corporation’s subsidiary – LG Chem, a global leader in the production of electric vehicles battery materials and advanced chemical materials, in obtaining a US$1 billion 10-year K-sure green loan, fully aligned with relevant international standards including LMA, LSTA and APLMA’s Green Loan Principles and verified by a second party opinion issued by Sustainable Fitch. The facility will fund the construction and operation in Clarksville, Tennessee, of the US’ largest manufacturing plant of cathode materials dedicated to electric vehicles with an annual capacity of up to 60,000 tons per annum (TPA), once operational. The equipment will power the fleet of a major US automaker.

LG Chem plays a key role in supplying materials to EV battery and car manufacturers, thus promoting the transition to more sustainable mobility. Its parent company, LG Corporation is a leading South Korean electronics, chemicals and telecommunications group, also known for its innovation and commitment to sustainable solutions.

Through this project, LG Chem is able to scale up their production to meet the growing demand for clean cars, while strengthening their supply chain. The project is also of strategic importance in supporting LG Chem Group’s broader transition from a conventional chemical player to a global sustainable science company.  

The Bank plays various key roles in this transaction as Joint Export Credit Agencies (ECA) Coordinator, Joint Green Loan Coordinator, Joint Underwriter & Bookrunner, Joint Mandated Lead Arranger, Joint Initial Lender and Administrative Agent. Ahead of the on-going stream of overseas investments by Korean industries, particularly in the US following the latest tariff negotiations, this transaction executed within a very short timeframe, reinforces the Bank’s position and its leading credentials in terms of ECA untied financing in connection with outbound investments by the Bank’ clients. It also emphasises Crédit Agricole CIB’s continued commitment to supporting the shift toward a low-carbon economy and energy transition projects.