Lotte Chemical will manufacture cathode materials in Kentucky, a $238.7 million facility.
Governor Andy Beshear announced the latest electric vehicle investment in Kentucky, as LOTTE Aluminum Materials USA LLC will set up an aluminum foil manufacturing facility in Hardin County with a $238.7 million investment that will will create 122 full-time jobs.
Gov. Beshear said:
I welcome LOTTE to Kentucky as we continue to see significant investment from electric vehicle related companies across the state.
“Continued growth in this sector will require attracting a wide range of vendors, and this announcement from LOTTE means just that. We are building an ecosystem that will last for generations to come, and I am pleased to report that this business will be a very important part of that vision.
LOTTE Chemical announced a joint venture with LOTTE Aluminum to build a manufacturing plant in Elizabethtown to produce 36,000 tonnes of cathode foil, a type of ultra-thin aluminum foil that is a base material used in batteries EV. The cathode sheet is one of the four main components of lithium-ion batteries.
It supports the cathodic active material which determines the capacity and the voltage of the secondary battery, and at the same time serves as a passage for the electrons.
Company executives predict demand for the material will grow an average of 32 percent per year through 2030. The Hardin County operation, located on 40 acres in the TJ Patterson Industrial Park, will be the first plant in aluminum foil company located in the United States and is expected to start operating in 2025.
The project also represents the continued success of Kentucky’s Pilot Product Development Initiative (PDI), as the site that will house LOTTE has been approved for $500,000 in state funding in 2020 to support improved infrastructure.
Kim Gyo HyunChairman and CEO of LOTTE Chemical, said:
We will do our best to develop and support the technology, so that we can stably produce high-quality, high-yield cathode sheets to meet customers one step at a time.
LOTTE Aluminum and LOTTE Chemical are subsidiaries of the LOTTE Group, one of South Korea’s largest conglomerates, with over 90 business units employing over 80,000 people.
The LOTTE Group was founded in 1967 and serves a wide range of industries including hospitality, financial services, food manufacturing, entertainment, industrial chemicals and aluminum manufacturing, among others.
LOTTE Chemical, established in 1976, produces basic chemicals and advanced materials, including polymers, monomers, basic petrochemicals, building and interior materials, and water treatment membranes.
Founded in 1966, LOTTE Aluminum manufactures aluminum foil, printed packaging materials, and corrugated boxes, among other products.
Kentucky is positioning itself as a national leader in the rapidly growing electric vehicle market, with significant investments over the past two years. Since June 2020, the Commonwealth has seen over $8.5 billion in EV-related investment, with well over 8,000 full-time jobs announced.
Last year, the Beshear administration announced the two largest economic development projects in state history. In September 2021, Governor Beshear and leaders of Ford Motor Co. and SK Innovation celebrated BlueOvalSK’s transformative $5.8 billion investment that will create 5,000 jobs in Hardin County.
And in April of this year, the Governor was joined by Envision AESC management to announce a $2 billion investment that will create 2,000 jobs in Warren County. These announcements cement Kentucky as the EV battery production capital of the United States.
Hardin County Judge/Executive Harry Berry said the project adds to recent growth in central Kentucky.
Hardin County is on a fast track to unprecedented growth in the years to come and this announcement reinforces that notion.
“Our local leaders, both in government and in organizations such as the Elizabethtown-Hardin County Industrial Foundation, have been and will continue to be committed to ensuring that new manufacturers have the support they need to build and grow. in our community.”
Elizabethtown Mayor Jeff Gregory said bringing LOTTE to the area will benefit the entire region.
Mayor Jeff Gregorysaid:
Through industrial revenue bonds issued by the city, we strive to encourage industrial development here in Elizabethtown.
“The arrival of LOTTE Aluminum Materials USA will be a victory for the workforce of Elizabethtown and the workforce of the surrounding area, and by extension, a victory for the community.”
Matt Hess, chairman of the Elizabethtown-Hardin County Industrial Foundation board, noted that the project builds on the growing presence of electric vehicles in the Commonwealth.
Matt Hess, Chairman of the Board of the Elizabethtown-Hardin County Industrial Foundation, said:
Amid recent announcements of large-scale industrial development in the Elizabethtown-Hardin County area over the past year, there has been much discussion of upcoming ancillary projects in the area.
“This announcement proves that there is a lot of truth to the claim that our industrial sector will only grow in the years to come. We have already seen growth over the past year with the construction of Kruger Packaging and the expansion of existing manufacturers into the industrial park, and the arrival of Lotte Aluminum Materials USA signals even stronger growth.
Greg Lee, President and CEO of Nolin RECC, spoke about the continued growth of Kentucky’s electric vehicle industry.
Greg Lee, President and CEO of Nolin RECC, said:
Kentucky’s future is changing dramatically thanks to the electric vehicle industry.
“This investment by LOTTE Aluminum is a testament to that movement,” Lee said. “We are thrilled to welcome LOTTE Aluminum to our Nolin RECC and the Touchstone Energy Cooperative family of Kentucky, and we look forward to helping them succeed here in Hardin County.”
LOTTE’s investment and projected job creation adds to recent economic momentum in the Commonwealth as the state rebuilds stronger from the effects of the pandemic.
In 2021, the Commonwealth broke all economic development records in the books. The announcements of new locations and private sector expansion included a record total planned investment of $11.2 billion and commitments to create a record number of more than 18,000 full-time jobs over the next few years.
Kentucky’s average incentive hourly wage for statewide projects in 2021 was $24 before benefits, a 9.4% increase from the previous year.
Economic momentum continued through 2022, with S&P Global Ratings and Fitch Ratings raising Kentucky’s financial outlook to positive in recognition of the Commonwealth’s booming economy.
And Site Selection magazine placed Kentucky 6th in its annual Prosperity Cup rankings for 2022, which recognizes state-level economic success based on capital investment.
Kentucky has posted new record unemployment rates for three consecutive months, rising from 3.9% in April to 3.8% in May and 3.7% in June.
In July, the governor announced the highest annual growth rate in 31 years. And for the second year in a row, Kentucky’s general fund budget surplus topped $1 billion. Also in July, Governor Beshear reported that the state’s Rainy Day Fund reached a record balance of $2.7 billion, significantly higher than the $129 million balance the fund had when the governor took office. .
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May approved a 10-year incentive agreement with the company under the Kentucky Business Investment Program.
The performance-based agreement can provide up to $3.3 million in tax incentives based on the company’s investment of $238.7 million and annual goals of:
- Created and maintained 122 full-time jobs in Kentucky over 10 years; and
- Pay an average hourly wage of $23.35, including benefits, for these jobs.
Additionally, KEDFA has approved LOTTE for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows licensed companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development, and electronic processing.
By achieving its annual objectives over the term of the agreement, the business may be eligible to retain a portion of the new tax revenue it generates. The company can claim eligible incentives against its income tax and/or employee contributions.
Additionally, LOTTE may receive resources from Kentucky Labor Service Providers. These include free recruitment and placement services, low-cost personalized training, and job training incentives.
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LOTTE Group to Locate $238.7 Million Facility in Elizabethtown, Create 122 Jobs to Service Electric Vehicle Industry, FRANKFORT, Ky., August 4, 2022