GM and LG agreed to supply battery materials worth $19 billion
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LG Chem Company, a division of LG, reported on signing an agreement with GM, under which the South Korean manufacturer will supply the American company with more than 500 thousand tons of cathode materials for the production of batteries for electric vehicles. The transaction volume is estimated at $18.6 billion.
Supplies of this volume of cathode materials should allow GM to produce about 5 million electric vehicles, LG Chem said in a statement. Deliveries should begin in 2026 and last until 2035. It is planned that the necessary materials will be supplied from the LG Chem plant under construction in Tennessee, which will begin operating in 2026. Demand for cathode materials is growing steadily around the world due to the growing popularity of electric vehicles. Market research company TrendForce estimates that by 2025, annual global demand for cathodes will reach 2.15 million tons.
Read about why growth in sales of electric vehicles will slow down in 2024 in the Kommersant article. “Electric vehicles have low batteries”.
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