LG Chem inks cathode material supply deal with General Motors worth 18.8 billion USD

LG Chem has entered a significant long-term cathode material supply contract with General Motors (GM) worth KRW 25 trillion, aiming to lead the North American EV market through a sustainable future and strong strategic cooperation.

Share This Post

LG Chem has secured a landmark deal with General Motors (GM), entailing the supply of over 500,000 tons of cathode materials. The contract is valued at 25 trillion South Korean won (approx. 18.8 billion USD) and is set to run from 2026 to 2035, aimed to support the production of about 5 million electric vehicles (EVs). This agreement follows a comprehensive understanding made in July 2022 between the two entities for a long-term cathode material supply, underlining a deepening cooperation.

Jeff Morrison, GM’s Vice President, highlighted the contract’s role in strengthening the North American supply chain at a critical time for the industry, emphasizing the operation’s alignment with GM’s sustainable battery EV supply chain goals. LG Chem CEO, Shin Hak-cheol, expressed the company’s intent to lead the North American EV market towards sustainability and create unique customer value through world-class productivity and global production base expansions.

The contract involves the utilization of LG Chem’s Tennessee plant in the U.S. as a production hub for cathode materials, enhancing the local supply chain for North American EVs. Starting from 2026, LG Chem will supply GM with NCMA (nickel, cobalt, manganese, aluminum) cathode materials primarily for use in Ultium Cells, a joint venture between LG Energy Solution and GM, and potentially other EV projects.

The deal also aligns with the U.S. Inflation Reduction Act (IRA) subsidy criteria for EVs, using North American-sourced materials. December 2023 saw the commencement of LG Chem’s construction of America’s largest cathode plant in Tennessee, with a focus on optimizing production for North American EVs and achieving a high level of manufacturing competitiveness.

Source: LG Chem – Press Release

Share This Post

Transforming Science & Technology into Effective Marketing

Let's Find Out What We Can Do For You​

We add value to scientific and technological businesses by implementing creative marketing tactics to boost sales, align internal teams, and outperform competition in the market.

Latest Market & Industry News

How do we Get in Touch?

Drop Us A Line to connect

Let have a chat about your challenges and how we could help and support you to evolve your marketing strategy and execution. 

Creative marketing_Connect
Creative Marketing Logo

Let's connect

and Find Out How We Can Support Your Business