In a significant move towards bolstering its electric vehicle (EV) ambitions, General Motors (GM) has announced a groundbreaking supplier deal with LG Chem. The collaboration entails a staggering investment of $19 billion over the next decade, signaling a firm commitment to the EV revolution.
The long-term agreement, unveiled on Wednesday, outlines LG Chem’s pivotal role in supplying critical materials essential for EV battery production. These materials include nickel, cobalt, manganese, and aluminum – vital components for powering the next generation of electric vehicles.
According to the South Korean supplier, LG Chem will provide GM with over 500,000 tons of cathode materials from 2026 through 2035. This massive supply is projected to be sufficient to fuel an impressive five million units of EVs, each boasting a range of over 300 miles.
The cathode materials, sourced from an LG Chem plant currently under construction in Tennessee, will serve as a primary resource for GM’s joint venture battery cell plants across North America. Notably, these plants include three joint venture facilities operated in collaboration with Ultium Cells, an LG spinoff.
While the partnership between GM and LG Chem was initially unveiled in July 2022, specific details regarding pricing and production locations were previously undisclosed. However, the latest iteration of the agreement extends the collaboration for an additional five years beyond its original expiration date in 2030.
The decision to solidify this partnership underscores GM’s unwavering dedication to advancing its EV initiatives. Despite the challenges posed by slower-than-expected EV adoption rates, GM remains steadfast in its commitment to sustainable transportation solutions.
Jeff Morrison, GM’s vice president of global purchasing and supply chain, emphasized the significance of the contract, stating that it “builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs.”
With this monumental deal, GM reaffirms its position as a trailblazer in the EV landscape. While the automotive industry grapples with the complexities of transitioning to electric mobility, GM’s strategic alliance with LG Chem underscores its proactive approach towards shaping the future of transportation.