LG Chem, GM Sign $19 Billion Deal on Cathode Materials

By Kwanwoo Jun

South Korea's LG Chem has signed a $19 billion deal with General Motors to supply cathode materials used to make electric-vehicle batteries.

The South Korean chemical company said in a press release Wednesday that it will supply 24.750 trillion won ($18.65 billion) worth of cathode materials to GM from 2026 through 2035.

LG Chem plans to supply the U.S. auto giant with around 500,000 metric tons of cathode materials, which will be produced at its plant currently being built in Tennessee, according to the statement.

The estimated total volume of cathode materials would be enough to make batteries to power about 5 million high-performance electric vehicles, it said.

The South Korean company broke ground on the Tennessee plant in December 2023, which will produce 60,000 metric tons of cathode materials annually starting from 2026.

Write to Kwanwoo Jun at [e-mail]

(END) Dow Jones Newswires

02-07-24 0319ET