General Motors and LG Chem have established a $19 billion long-term supply contract for cathode materials, with LG Chem set to supply GM with over 500,000 tons of materials from 2026 to 2035. The materials will come from LG Chem's Tennessee plant and will be used to power 5 million electric vehicles. This move aims to support GM's growing EV production needs and strengthen the North American supply chain, while also contributing to a sustainable future for the North American EV market.
General Motors plans to spend $19 billion over the next decade to source critical materials for electric vehicle batteries from LG Chem, with a long-term supply contract for cathode materials including nickel, cobalt, manganese, and aluminum from 2026 through 2035. The supply will be enough to power 5 million units of EVs with a range of over 300 miles, and will come from an LG plant under construction in Tennessee to supply GM's joint venture battery cell plants in North America. The extended deal reflects GM's commitment to creating a sustainable battery EV supply chain and adjusting plans for slower EV adoption.
LG Chem, a South Korean chemical maker, has partnered with China's Huayou Group's subsidiary Youshan to build a joint electric vehicle battery material plant in Morocco. The plant, set to start production in 2026, aims to produce 50,000 tonnes of lithium-phosphate-iron (LFP) cathode materials annually. LG Chem is entering the LFP cathode business to meet the growing demand for cheaper LFP batteries as the auto industry seeks to produce more affordable electric vehicles. LG Chem also plans to build two other facilities in Indonesia, including a precursor plant and a plant for extracting mixed hydroxide from nickel ore.
