Sign up for our popular daily email to catch all the latest EV news!
LG Chem inked a long-term cathode material supply deal with General Motors (GM) for a staggering KRW 25 trillion (US$18.8 billion). This strategic partnership solidifies LG Chem’s position as a key player in the North American EV supply chain, fueling GM’s ambition to electrify its fleet.
Key Highlights:
- Massive Supply: LG Chem will provide over 500,000 tons of cathode materials, enough to power 5 million high-performance electric vehicles (EVs) with a 500km range.
- Boosting North America: The deal leverages LG Chem’s Tennessee cathode plant, establishing a local supply chain optimized for North American EVs.
- Strengthened Partnership: This agreement builds upon the July 2022 collaboration and aligns with the Inflation Reduction Act’s EV subsidy criteria.
- Future-Proofing Production: LG Chem is constructing America’s largest cathode plant in Tennessee, boasting an annual capacity of 60,000 tons and featuring cutting-edge calcination technology.
Quotes:
- Jeff Morrison, GM Vice President, Global Purchasing and Supply Chain: “This contract strengthens our commitment to a robust EV supply chain, and importantly, with LG Chem in Tennessee, this deal bolsters the North American ecosystem at a critical juncture.”
- Shin Hak-cheol, CEO, LG Chem: “By deepening our strategic cooperation with GM, we will jointly lead the North American EV market’s sustainable future. We aim to create unique customer value through world-class productivity and global production base expansion.”
Analysis:
This landmark deal underscores LG Chem’s commitment to the North American EV market and positions the company as a crucial partner in GM’s electrification strategy. The Tennessee plant, with its substantial capacity and advanced technology, will play a central role in meeting the growing demand for high-performance EV batteries. The agreement also aligns with the Inflation Reduction Act, ensuring its products comply with the act’s stipulations. This strategic partnership signifies a significant step towards a more sustainable and electrified future for both companies and the automotive industry as a whole.
Sign up for our popular daily email to catch all the latest EV news!
