On Wednesday, South Korea based LG Chem announced that it has entered into a contract valued at 24.7 trillion won ($18.61 billion) with General Motors to supply electric vehicle (EV) battery cathodes. The agreement spans from the current year until 2035.
General Motors has sealed a long-term cathode material supply agreement with LG Chem of South Korea, valued at 25 trillion Korean won or roughly $18.8 billion. This partnership is part of GM’s strategy to establish a strong and sustainable battery electric vehicle (EV) supply chain to meet its EV production requirements.
LG Chem intends to supply General Motors with over 500,000 tons of cathode materials throughout the duration of the contract, enough to support the production of approximately 5 million electric vehicles. With this large volume, LG Chem aims to facilitate the widespread adoption of electric vehicles and advancing sustainable transportation solutions.
The upcoming battery cathode plant in Tennessee, USA, scheduled to commence mass production in 2026, will play a key role in fulfilling the supply agreement between LG Chem and General Motors. This strategic investment underscores LG Chem’s dedication to establishing a localized supply chain and strengthening the production capacity of essential components for the burgeoning electric vehicle market.
LG Chem’s latest announcement outlines its strategy to provide cathode materials sourced from North America to General Motors to commence production at its Tennessee plant in 2026. The construction of this facility, slated to become the largest cathode plant in the United States, began in December 2023, with an annual capacity projected at 60,000 tons.
Ultium Cells LLC, a collaborative venture between General Motors and LG Energy Solutions, is expected to predominantly utilize the nickel, cobalt, manganese, and aluminum (NCMA) cathode materials manufactured at the Tennessee plant. With this direct supply agreement, LG Chem’s cathode materials may find application in various electric vehicle initiatives undertaken by General Motors, further solidifying the partnership between the two entities.
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