South Korea-based LG Chem has secured a long-term cathode material supply contract with General Motors Co. in Detroit, worth $24.7 billion. The contract will run from 2026 through 2035.
LG Chem says it plans to bolster cooperation with GM in the North American market by utilizing the cathode plant it’s building in Tennessee as a production hub for the global battery material market.
Starting in 2026, LG Chem will supply GM more than 500,000 tons of cathode materials enough to power 5 million units of high-performance pure EVs with a range of 310 miles on a single charge.
Following a comprehensive agreement in July 2022 for a long-term supply of cathode materials, the contract strengthens the cooperation between the two companies and specifies a portion of the agreed volume.
“This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs,” says Jeff Morrison, vice president for global purchasing and supply chain at GM. “Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”
The 2026 start of the contract coincides with the start of production of its cathode materials plant in Tennessee, under construction since December 2023. The NCMA (nickel, cobalt, manganese, aluminum) cathode materials produced in Tennessee plant are expected to be primarily used by Ultium Cells, a joint venture between LG Energy Solution and GM.
“By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future,” says Shin Hak-cheol, CEO of LG Chem. “We aim to create unique customer value through world-class productivity and the expansion of our global production bases.”
LG Chem’s cathode materials also may be used by GM in other EV projects. The South Korean supplier say it intends to utilize its local supply chain to ensure that customers, including GM, can meet the EV subsidy criteria set by the U.S. Inflation Reduction Act (IRA).
The plant being built in Tennessee is reported to be the America’s largest cathode manufacturing facility. It is expected to have an annual production capacity of 60,000 tons. LG Chem plans to use the Tennessee facility as a base for communication with customers, producing customized cathode materials optimized for North American EVs from the development stage. The company also plans to enhance the manufacturing competitiveness of the Tennessee plant by advancing its engineering technology of the calcination process, securing the world’s highest-level annual production capacity of 10,000 tons per line.
