US$19 billion! LG Chem signs battery material supply agreement with General Motors

South Korean chemicals group LG Chem has signed a long-term cathode material supply contract worth US$19 billion with General Motors (GM). LG Chem intends to use its U.S. cathode plant in Tennessee as a production hub for the global battery materials market.

Under the long-term supply agreement, which runs from 2026 to 2035, LG Chem will supply more than 500,000 tons of cathode materials to General Motors, which is said to be enough to power 5 million pure electric vehicles with a single range of 500 kilometers.

"This contract builds on GM's commitment to creating a strong, sustainable battery electric vehicle supply chain to support our rapidly growing electric vehicle production needs," said Jeff Morrison, GM's vice president of global purchasing and supply chain. "Importantly, the partnership with LG Chem will take place in Tennessee and strengthen the North American supply chain at a critical time for the industry."

Shin Hak-cheol, CEO of LG Chem, said: "By strengthening our strategic cooperation with General Motors, we will jointly lead the North American electric vehicle market toward a sustainable future. Our goal is to create unique customer value through world-class productivity and expansion of our global manufacturing base. "

LG Chem plans to supply cathode materials from North America to General Motors from 2026 to coincide with the planned start-up of its cathode materials factory in Tennessee. The NCMA (nickel, cobalt, manganese, aluminum) cathode material produced at the Tennessee plant is expected to be used primarily by Ultium Cells, a joint venture between LG Energy Solution and General Motors. However, GM may also use cathode materials in other electric vehicle projects.