LG Chem’s cathode material plant under construction in Tennessee, USA (Photo courtesy of LG Chem)
SEOUL, August 4 (Korea Bizwire) — In a major step following recent U.S.-South Korea trade negotiations, Korea Trade Insurance Corporation (K-SURE) has issued its first investment guarantee under a $200 billion bilateral fund aimed at boosting Korean business ventures in the United States.
K-SURE announced Sunday that it will provide a $1 billion financial guarantee for LG Chem’s ongoing construction of a cathode materials plant in Clarksville, Tennessee. The project, which involves an initial investment of around 2 trillion won (approximately $1.4 billion), is part of LG Chem’s broader strategy to solidify its electric vehicle (EV) supply chain within the U.S.
The Clarksville facility, set to become the largest of its kind in the U.S., will be capable of producing enough cathode materials annually to power approximately 600,000 high-performance EVs with a driving range of over 500 kilometers. Operations are expected to begin next year.
With K-SURE’s backing, LG Chem can now access low-interest, long-term financing from global lenders — a key advantage as Korean firms navigate shifting U.S. trade and tariff environments. The guarantee also enhances LG Chem’s ability to establish a robust local supply chain, a growing priority amid increasing U.S. industrial policy protections.
The move comes just days after the two governments finalized negotiations to establish a $200 billion U.S. investment fund supporting Korean firms in strategic sectors such as semiconductors, nuclear power, batteries, and biotechnology.
At a briefing last week, Lee Jae-myung administration policy chief Kim Yong-beom noted that most of the fund will likely take the form of loans and guarantees rather than equity or direct investment. “I believe institutions like the Export-Import Bank of Korea and K-SURE will play the leading role through guarantees rather than loans,” Kim said.
K-SURE President Jang Young-jin indicated that the LG Chem deal sets the tone for future support mechanisms under the fund. “We expect more Korean companies with advanced technologies to expand into the U.S. following the tariff negotiations,” Jang said. “K-SURE will continue to provide seamless financial guarantees to support these ventures.”
M. H. Lee (mhlee@koreabizwire.com)
