EV
General Motors and LG Chem partners for $19 billion cathode material supply for EVs
South Korea’s LG Chem has signed a deal with General Motors (GM) worth KRW 25 trillion (around $19 billion) to supply cathode materials for electric vehicles (EVs).
This contract will commence from 2026 through 2035, LG Chem will supply GM over 500,000 tons of cathode materials to produce 5 million units of high-performance pure EVs with a range of 500km on a single charge.
LG aims will use its cathode plant in Tennessee, U.S. to produce these ordered materials. Last December, LG Chem commenced the construction of its cathode plant in Tennessee. The plant has an annual capacity of 60,000 tons.
This agreement is an addition to both of these companies’ partnership in 2022 to supply more than 950,000 tons of Cathode Active Material (CAM) to GM through 2030 to produce 5 million units of EVs.
“This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs,” said Jeff Morrison, GM vice president of global Purchasing and Supply Chain. “Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”
The Nickel, Cobalt, Manganese, and Aluminum cathode materials produced in the Tennessee plant are expected to be used by Ultium Cells, a joint venture between LG Energy Solution and GM.
“By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future. We aim to create unique customer value through world-class productivity and the expansion of our global production bases,” said LG Chem CEO Shin Hak-Cheol.
(source – LG Chem)
