Commercial, Distributed Energy Resources, GHG Emissions - February 8, 2024
GM Signs Cathode Material Supply Deal
General Motors (GM) has signed a long-term cathode material supply contract worth KRW 25 trillion.
LG Chem, the company GM signed the agreement with, will work with GM in the North American market by utilizing its cathode plant in Tennessee, U.S.
In December 2023, LG Chem began the construction of the largest cathode plant in the state, with an annual production capacity of 60,000 tons. The plant will serve as a production hub for the global battery material market.
A long-term supply contract will start in 2026 and last through 2035. LG Chem will supply GM more than 500,000 tons of cathode materials, which is enough to power 5 million units of high-performance pure EVs with a range of 500km on a single charge.
“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, in a statement. “Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”
LG Chem plans to supply North American-sourced cathode materials to GM starting in 2026, coinciding with the start of production of its cathode materials plant in Tennessee. The NCMA (nickel, cobalt, manganese, aluminum) cathode materials produced at the Tennessee plant are expected to be primarily used by Ultium Cells, a joint venture between LG Energy Solution and GM. As this supply agreement is a direct contract with GM, LG Chem’s cathode materials may also be used by GM in other EV projects.
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