LG Chem Signs $19bn Cathode Material Supply Deal With General Motors

South Korea's LG Chem has secured a long-term cathode material supply contract with General Motors (GM), worth $19 billion (KRW 25 trillion). The long-term supply contract will commence from 2026 through 2035.

LG Chem will supply GM more than 500,000 tons of cathode materials enough to power 5 million units of high-performance pure (electric vehicles) EVs with a range of 500km on a single charge.

It aims to bolster cooperation with GM in the North American market by utilising its cathode plant in Tennessee, US, as a production hub for the global battery material market.

On December 2023, LG Chem commenced the construction of America’s largest cathode plant in Tennessee with an annual production capacity of 60,000 tons. 

The NCMA (nickel, cobalt, manganese, aluminum) cathode materials produced in Tennessee plant are expected to be primarily used by Ultium Cells, a joint venture between LG Energy Solution and GM.

Jeff Morrison, GM vice president, Global Purchasing and Supply Chain, says: “This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs. Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”

LG Chem CEO, Shin Hak-cheol, adds: “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.”

LG Chem says it will also enhance the manufacturing competitiveness of its Tennessee plant by advancing its engineering technology of the calcination process, securing the world's highest-level annual production capacity of 10,000 tons per line.