GM, LG Chem Sign $19B Cathode Material Supply Deal
SEOUL, South Korea – LG Chem announced Wednesday that it has secured a long-term cathode material supply contract with General Motors worth nearly $19 billion.
LG Chem, which partnered with GM on the Ultium Cells LLC plant in Lordstown, aims to bolster cooperation with GM in the North American market by using its cathode plant in Tennessee as a production hub for the global battery material market.
The nickel, cobalt, manganese and aluminum cathode materials produced in LG Chem’s Tennessee plant are expected to be primarily used by Ultium Cells, but since the supply agreement is a direct contract with GM, the materials may also be used by GM in other EV projects, a news release states.
Under the supply contract, which will run from 2026 through 2035, LG Chem will supply GM with more than 500,000 tons of cathode material, the release states.
“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.”
Construction on the Tennessee plant began in December 2023. It will produce 60,000 tons of cathode material annually, LG Chem said.
Pictured at top: An artist’s rendering of LG Chem’s cathode plant in Tennessee.
Published by The Business Journal, Youngstown, Ohio.