LG Chem signs $19 billion deal with General Motors to supply cathode for EVs

By Ovunc Kutlu

ISTANBUL (AA) - LG Chemical announced Wednesday it signed a nearly $19 billion deal with General Motors (GM) to supply cathode materials to the American carmaker for electric vehicle (EV) production.

LG Chem said the agreement is worth KRW 25 trillion ($18.8 billion) and it aims to utilize GM's cathode plant in the state of Tennessee as a production hub for the global battery material market.

South Korea's biggest chemical company said it will supply GM beginning in 2026 with more than 500,000 tons of cathode materials -- nickel, cobalt, manganese, aluminum -- to power 5 million units of high-performance EVs with a range of 500 kilometers (310 miles) 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," Jeff Morrison, GM vice president and Global Purchasing and Supply Chain, said 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 CEO Shin Hak-cheol said the deal will allow the firms to jointly lead the North American EV market to a sustainable future, and added: "We aim to create unique customer value through world-class productivity and the expansion of our global production bases."

The South Korean company noted that it commenced the construction of the US' largest cathode plant in Tennessee in December, with an annual production capacity of 60,000 tons.