LG Chem, the South Korean chemicals group, has made a 10-year deal with US automotive producer General Motors to supply 500,000 tons of cathode material, enough for approximately five million EVs.
First deliveries are expected in 2026. The value of the deal is ₩25 trillion ($19 billion), LG Chem said.
“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.”
LG Chem commenced the construction of America’s largest cathode plant in Tennessee in December with an annual production capacity of 60,000 tons. LG Chem plans to use the facility as a base for customer contacts and producing customised cathode materials for North American EVs.
LG Chem will also enhance the manufacturing competitiveness of the 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.
The Tennessee cathode material plant will produce nickel, cobalt, manganese, aluminum cathode materials, primarily to be used by Ultium Cells, a joint venture between LG Energy Solution and GM.
LG Chem’s cathode materials may also be used by GM in other EV projects. LG Chem intends to utilise its local supply chain to ensure that customers, including GM, can meet the EV subsidy criteria set by the US Inflation Reduction Act.
