LG Chem secured a long-term cathode material supply contract with General Motors to supply more than 500,000 tons of cathode materials to GM.
The deal, announced on Feb. 7, is valued at 25 trillion won ($18.6 billion) will primarily supply Ultium Cells, a joint venture company between LG Energy Solution and GM.
LG Chem aims to bolster cooperation with GM and its joint venture, Ultium Cells, in the North American market by utilizing its cathode plant in Clarksville, Tennessee, as a production hub for the global battery material market.
Under terms of the agreement, LG Chem will supply GM from 2026 through 2035. The material will be enough power 5 million units of high-performance pure electric vehicles with a range of 500km on a single charge.
The deal to source from LG Chem’s Clarksville site will strengthen the North American EV supply chain, said Jeff Morrison, GM vice president of global purchasing and supply chain.
“This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs,” he said in a news release.
LG Chem began construction on the $3.2 billion plant in Tennessee in December. The plant is expected to have an annual production capacity of 60,000 tons.