Air Liquide said it will invest approximately $150 million to expand its production capacity and pipeline network in Tennessee as part of a new long-term contract with LG Chem. The company said it will supply oxygen to LG Chem’s future cathode active material plant.

The investment is driven by LG Chem’s need for oxygen at its future cathode active material manufacturing plant for lithium-ion electric vehicle batteries, Air Liquide said. According to the company, it will build, own, and operate a second air separation unit, liquefier, storage, and a pipeline at its Airgas production facility in Clarksville, Tennessee.