General Motors and LG agree $19bn EV battery deal
US automotive giant General Motors will spend USD 19 billion sourcing raw materials from LG Chem for use in electric vehicle batteries.
The two firms initially formed their partnership in July 2022, but without agreeing price or production location at the time. Now, following a fresh meeting between the partners, more details have been thrashed out.
In a news release, LG Chem confirmed it will supply GM with more than 500,000 tons of cathode materials — including nickel, cobalt, manganese and aluminum — from 2026 through 2035. This will be enough to power five million units of EVs with a range of more than 500km on a single charge. The deal will be worth USD 19 billion over the decade.
LG Chem plans to supply cathode materials to GM starting from 2026 via its plant in Tennessee. The NCMA (nickel, cobalt, manganese, aluminum) cathode materials produced in Tennessee plant are expected to be primarily used by Ultium Cells, a joint venture between LG Energy Solution and GM.
“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, 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.”