As part of General Motors’s (GM) long-term goals to become a leader in electric vehicles, the American automaker will receive cathode materials worth up to $19 billion from South Korea’s LG Chem in the upcoming years.
The Seoul-based chemical business announced on February 7 that it had signed a ten-year agreement to supply GM with over 500,000 tons of cathode materials, which is around five million EVs’ worth of batteries, starting in 2026. The cathode supply is estimated to be worth at least $18.65 billion.
In an effort to increase its position in the North American EV chain, LG Chem broke ground on a plant in Tennessee, where it would manufacture the material, in December.
Starting in 2026, the facility will manufacture up to 60,000 metric tons of cathode materials annually, making it the largest cathode material plant in the United States.
According to LG Chem, the agreement with GM expands upon a 2022 agreement the firms reached about the long-term supply of cathode materials.
The Detroit carmaker has been working to expand its emerging EV industry in recent years. In 2021, the manufacturer announced its intention to phase out almost all gasoline and diesel-powered vehicles by 2035, placing it among the pioneers of automakers pledging to transition to EVs completely.
The newest agreement struck by LG Chem follows one that it made in October to supply Toyota with cathode materials valued at over $2 billion in North America.