LG Chem has secured a 25 trillion won ($19 billion) deal with General Motors (GM) to supply electric vehicle (EV) battery materials, the Korean company announced on Wednesday.
Under the agreement, LG Chem aims to provide 500,000 tons of cathodes between 2026 and 2035, sufficient for the production of batteries for 5 million high-performance EVs capable of traveling at least 500 kilometers per single charge.
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Cathodes, a crucial component in EV batteries, account for more than 40 percent of battery costs.
The cathodes will be produced at LG Chem’s plant in Tennessee, where the company is currently constructing a $1.5 billion facility with a production capacity of 60,000 tons, making it the largest cathode plant in the United States. Operations at the Tennessee plant are scheduled to commence in 2026.
The cathodes, based on the nickel-cobalt-manganese-aluminum (NCMA) composition, are expected to be delivered to Ultium Cells, a joint venture between LG Energy Solution and General Motors, with plants located in Ohio, Tennessee, and Michigan.
LG Chem and General Motors forged a strategic partnership in July 2022 to ensure a stable supply of cathodes.
“LG Chem will play a leading role in the North American EV market through our ongoing strategic collaboration with General Motors,” said LG Chem CEO Shin Hak-cheol.
General Motors CEO Mary Barra visited Korea on Wednesday for discussions with Samsung and LG regarding potential further business engagements in the automotive sector. This marks Barra’s first visit to Korea since 2016 when she assumed the chair of the board.
During her visit, Barra met with Choi Yoon-ho, CEO of Samsung SDI, possibly to discuss their joint battery plant currently under construction in Indiana.
