Friday, July 19, 2024
News$18.6 billion worth of cathodes: GM and LG Chem Ltd. sign an...

$18.6 billion worth of cathodes: GM and LG Chem Ltd. sign an agreement

  • GM will accelerate its production of EVs.

  • Approximately 950,000 tons of cathodes will be supplied to GM before the end of the decade.


 

With the shift to electric propulsion, increased production of battery cells is becoming essential. This is precisely what General Motors‘ top management has just done. The American giant has signed an agreement with its Korean partner LG Chem Ltd.

The company will supply the equivalent of $18.6 billion worth of cathode materials to General Motors on a long-term basis. Starting in 2026, the agreement will provide GM with more than 500,000 tons of cathode materials.

This increased production will be handled by LG’s Tennessee-based U.S. plant, which should accelerate electric vehicle production across the automaker’s four brands. In fact, the agreement will give GM more resources, enabling it to produce around five million electric vehicles using these battery cells.

LG Chem’s just-completed plant in Montgomery County, Clarksville, Tennessee, can produce 60,000 tons of cathode material per year.

The agreement was ratified earlier this week, with GM’s Chief Operating Officer Mary Barra traveling to Seoul, South Korea for the occasion. According to Automotive News, the head of GM also held talks with Samsung SDI Co.

The agreement signed between the two partners is part of a longer-term supply commitment. LG Chem has already committed to supplying over 950,000 tonnes of these cathodes before the end of the decade.

In the months and years to come, this kind of commitment between battery manufacturers and producers will only intensify. Indeed, the very fact that the COO is in talks with other players in the cathode materials sector shows that there is indeed a monstrous need at this level.

Advertisement

Trending Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.