LG Chem, GM Secure Sustainable EV Battery Supply

LG Chem has inked a significant long-term cathode material supply deal with General Motors (GM), solidifying their partnership in the North American electric vehicle (EV) market. Commencing from 2026 to 2035, LG Chem will provide GM with over 500,000 tons of cathode materials, sufficient for powering 5M high-performance pure EVs with a range of 500km.

Collaborative effort strengthens EV supply in the US

GM's Vice President of Global Purchasing and Supply Chain, Jeff Morrison, emphasized the importance of collaboration in fortifying the North American EV 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,” stated Morrison. “Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”

This contract builds upon a prior comprehensive agreement in July 2022, underscoring the commitment of both companies to sustainable EV production. LG Chem's CEO Shin Hak-cheol highlighted the strategic cooperation with GM, aiming to dominate the North American EV market sustainably. Hak-cheol stated, “By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future. We aim to create unique customer value through world-class productivity and the expansion of our global production bases.”

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The deal aligns with LG Chem's plans to supply locally sourced cathode materials to GM starting in 2026, coinciding with the launch of its Tennessee plant. LG Chem intends to leverage its Tennessee facility to enhance communication with customers, optimize cathode materials for North American EVs, and boost manufacturing competitiveness.

GM's strategic EV battery material supply approach

The CEO of OneD Battery Sciences, Inc., Vincent Pluvinage, provides insightful commentary on GM's strategy on LinkedIn. He said, “General Motors is following a very smart and long term strategy to secure anode and cathode materials at EV-scale from qualified and strong suppliers. This is necessary to building the next generation of affordable EVs. Without securing the supply of critical materials from several suppliers, there is no way to control the cost of EV batteries in the second half of the decade. The quantities needed are huge.”

GM's guarantee of a steady cathode material supply from LG Chem ensures the smooth operation of their EV manufacturing and supports their broader strategy of transitioning towards sustainable mobility solutions. Dependence on a single supplier can pose risks to production continuity. By securing a long-term contract with LG Chem, GM can mitigate supply chain risks and ensure a steady flow of cathode materials, giving GM a competitive edge in the rapidly growing EV market.

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