- LG Chem is poised to supply GM with over 500,000 tons of cathode materials, substantial enough to power 5 million high-performance electric vehicles.
- The colossal deal underscores the commitment of both companies to secure the supply chain for EV production.
- LG Chem aims to comply with the U.S. Inflation Reduction Act (IRA), ensuring GM’s eligibility for EV subsidies.
LG Chem’s strategic alliance with General Motors stands as a testament to the evolving dynamics of the global electric vehicle (EV) market. The deal, which is worth KRW 25 trillion South Korean won ($18.78 billion), shows the commitment of both companies to secure the supply chain for GM EV battery production. LG Chem is poised to supply over 500,000 tons of cathode materials, substantial enough to power 5 million high-performance electric vehicles.
This move not only guarantees GM a steady stream of essential materials for EV batteries but also cements LG Chem’s position within the North American market. Their Tennessee plant is set to become a cornerstone in the production and supply of GM EV batteries and EV battery materials. This will also ultimately propel their transition to environmentally friendly transportation solutions and fortify the ongoing partnership between these industrial giants until 2035.
A Powerful Move Into North America
LG Chem is making strategic moves to become a key player in the North American EV market, with plans to supply General Motors with cathode materials originating directly from its U.S.-based sources starting in 2026. Aligning with the operational commencement of their Tennessee cathode materials plant, the company intends to deliver NCMA (nickel, cobalt, manganese, aluminum) cathode materials primarily to be utilized by Ultium Cells LLC, the joint venture between LG Energy Solution and GM.
This direct supply arrangement not only supports existing projects but also opens avenues for inclusion in GM’s broader range of EV initiatives. By sourcing locally, LG Chem aims to comply with the U.S. Inflation Reduction Act (IRA), ensuring GM’s eligibility for EV subsidies and reinforcing its commitment to contributing to local economic development.
Constructing a High-Level Production Plant
In a milestone ceremony held in December 2023, LG Chem began construction on what is set to become the largest cathode production facility in America, boosting the EV battery supply chain, and boasting an impressive annual capacity of 60,000 tons. Through this Tennessee-based GM EV battery plant, the company is solidifying its presence and honing the art of producing cathodes tailored to meet the specific needs of North American electric vehicles.
Moreover, the Tennessee plant’s manufacturing strength of these LG Chem battery materials is projected to be significantly bolstered by bringing leading-edge advancements to the calcination process. This will help them achieve an industry pinnacle of 10,000 tons annual production capacity per line, in a giant step forward for GM EV battery technology.
SOURCE | IMAGES: LG CHEM
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