GM, LG Chem announce $19 billion deal for EV battery materials

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DETROIT – General engines plans to spend $19 billion over the next decade or so under a new supplier agreement to source critical materials for use in electric vehicle batteries from LG Chem, the companies announced Wednesday ..

The long-term supplier contract will see LG Chem supply GM with more than 500,000 tonnes of cathode materials – including nickel, cobalt, manganese and aluminum – from 2026 to 2035, the South Korean supplier said. said in a statement.

This supply would be enough to power 5 million units of electric vehicles with a range of more than 300 miles, he said.

Cathode materials from an LG plant currently under construction in Tennessee will supply GM's joint venture battery cell plants in North America, including three joint venture plants with an LG spinoff called Ultium Cells.

The partnership was initially announced in July 2022, but without details on price or place of production. The original deal was set to expire after 2030, but the latest iteration extends it for another five years.

The adoption of electric vehicles has been slower than expected, and automakers such as GM have cut costs or delayed plans.

LG Chem said its goal was to “strengthen cooperation with GM in the North American market” through the agreement.

Jeff Morrison, GM's vice president of global purchasing and supply chain, said “the contract builds on GM's commitment to creating a strong and sustainable supply chain for battery electric vehicles.” to meet our rapidly growing needs for electric vehicle production.”

This is likely one of the largest, if not the largest, electric vehicle supply contracts signed by GM.

The deal suggests GM remains committed to electric vehicles, but the longer contract means the automaker adjusts its plans to account for slower-than-expected adoption.

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