LG Chem to supply cathodes to General Motors for electric vehicle batteries

LG Chem's cathodes [LG CHEM]

LG Chem signed a deal with General Motors to supply cathodes, a key component in electric vehicle (EV) batteries.

Under the deal, LG Chem will provide General Motors with 950,000 tons of cathodes from the second half of 2022 through 2030. That will be enough to make batteries for 5 million EVs.

The cathodes will be sold to Ultium Cells, a 50-50 joint venture between General Motors and Korean battery maker LG Energy Solution that makes batteries for the Detroit-based automaker’s EVs.

Cathodes are one of four core materials in lithium-ion batteries, which power EVs. Made of lithium, nickel, cobalt and manganese, cathode materials account for 40 percent of the production cost of an EV battery.

“This agreement builds on GM’s commitment to creating a strong, sustainable battery raw material supply chain to support our fast-growing EV production needs,” said Jeff Morrison, vice president of global purchasing and supply chain for General Motors. “LG Chem has demonstrated technical expertise, high-quality and mass production capabilities of cathode active materials over the last decade."

BY SARAH CHEA [chea.sarah@joongang.co.kr]