LG Chem to receive $19 billion from GM for EV battery materials by 2035.

• LG Chem will receive $19 billion from General Motors over the next decade for supplying critical materials for electric vehicle batteries, the companies announced on Wednesday.
• LG Chem will provide GM with over 500,000 tons of cathode materials for their long-term supply contract from 2026 to 2035.
• One of the largest, if not the largest, EV supply deals that GM has signed is the contract.

LG Chem will supply critical materials for electric vehicle batteries to General Motors over the next decade through a new supplier deal, with a total investment of $19 billion.

LG Chem will provide GM with more than 500,000 tons of cathode materials from 2026 to 2035 under a long-term supplier contract, according to a statement from the South Korean supplier.

It was stated that the supply would be sufficient to power five million electric vehicles with a range of over 300 miles.

LG's cathode materials from its Tennessee plant will be used in GM's joint venture battery cell plants in North America, including three plants with Ultium Cells.

The partnership, initially announced in July 2022 without specifics on price or production location, has been extended for another five years beyond its original expiration date of 2030.

Despite anticipations, the rate of EV adoption has been lower than predicted, prompting automakers like GM to reduce expenses or postpone plans.

LG Chem aims to strengthen its partnership with GM in the North American market through the deal.

The GM vice president of global purchasing and supply chain, Jeff Morrison, stated that the contract is a continuation of GM's dedication to establish a robust and sustainable battery EV supply chain to meet the growing demand for electric vehicles.

One of the largest, if not the largest, EV supply deals that GM has signed is the contract.