LG Chem and General Motors Reach Agreement for Long-Term Supply of Cathode Active Material to Support EV Growth
- LG Chem plans to provide GM more than 950,000 tons of CAM over eight years, enough for approximately 5 million units of EV production
- CAM secured by GM will be used by Ultium Cells LLC, joint venture between GM and LG Energy Solutions, to support GM’s goal of 1 million EV production capacity in North America by end of 2025
- GM and LG Chem to also explore localization of CAM production in North America by mid-decade
- GM has contractually secured all battery raw material to support its goal of 1 million units of EV capacity in North America by the end of 2025
SEOUL AND DETROIT – LG Chem and General Motors Co. announced today a binding agreement for the supply of Cathode Active Material (CAM) from LG Chem to GM. The supply agreement will help GM meet its fast-growing EV production needs. CAM is a key battery material consisting of components like processed nickel, lithium and other materials representing about 40% of the cost of a battery cell.
Through the long-term supply arrangement, LG Chem plans to supply more than 950,000 tons of CAM to GM beginning the second half of 2022 through 2030, enough for approximately 5 million units of EV production. The CAM secured by GM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solution, at its battery cell plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.
GM and LG Chem will also explore the localization of a CAM production facility in North America by the end of 2025.
“This agreement builds on GM’s commitment to create a strong, sustainable battery raw material supply chain to support our fast-growing EV production needs,” said Jeff Morrison, GM vice president, Global Purchasing and Supply Chain. “LG Chem has demonstrated technical expertise, high-quality and mass production capabilities of cathode active materials over the last decade. At the same time, this agreement demonstrates GM’s commitment to strong supplier relationships, and compliments our many other recent EV supply chain announcements.”
“Importantly, GM now has contractual commitments secured with strategic partners for all battery raw material to support our goal of 1 million units of EV capacity by the end of 2025,” added Morrison.
The cathode materials that LG Chem plans to supply are NCMA (nickel, cobalt, manganese and aluminum) cathode materials for EVs built on GM’s Ultium Platform. NCMA cathode material is a product that combines LG Chem’s best material technology and is characterized by its excellent stability and output. Aluminum was applied to the material technology to strengthen stability while decreasing the amount of cobalt used in GM’s previous generation of batteries by 70%.
Shin Hak Cheol, CEO of LG Chem, said that “Based upon a close collaboration with customers, LG Chem will further strengthen its position as a global leader in the market by producing the world’s best cathode materials.”
About General Motors
General Motors (NYSE:GM) is a global company focused on advancing an all-electric future that is inclusive and accessible to all. At the heart of this strategy is the Ultium battery platform, which powers everything from mass-market to high-performance vehicles. General Motors, its subsidiaries and its joint venture entities sell vehicles under the Chevrolet, Buick, GMC, Cadillac, Baojun and Wuling brands. More information on the company and its subsidiaries, including OnStar, a global leader in vehicle safety and security services, can be found at https://www.gm.com.
About LG Chem
LG Chem is a leading global chemical company with a diversified business portfolio in the key areas of petro-chemicals, advanced materials, and life sciences. The company manufactures a wide range of products from high-value added petrochemicals to renewable plastics, specializing in cutting-edge electronic and battery materials, as well as drugs and vaccines to deliver differentiated solutions for its customers. LG Chem is committed to reaching carbon-neutral growth by 2030 and net-zero emissions by 2050 by managing the im-pacts of climate change and making positive contributions to society through renewable energy and responsible supply chains. Head-quartered in Seoul, Korea, LG Chem has multiple operation sites worldwide and generated KRW 42.7 trillion (USD 37.3 billion) in sales in 2021. For more information, please visit www.lgchem.com.
# # #
General Motors Cautionary Note on Forward-Looking Statements: This press release and related comments by management may include “forward-looking statements” within the meaning of the U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements represent our current judgement about possible future events and are often identified by words such as “aim,” “anticipate,” “appears,” “approximately,” “believe,” “continue,” “could,” “designed,” “effect,” “estimate,” “evaluate,” “expect,” “forecast,” “goal,” “initiative,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “priorities,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” or the negative of any of those words or similar expressions. In making these statements, we rely upon assumptions and analysis based on our experience and perception of historical trends, current conditions, and expected future developments, as well as other factors we consider appropriate under the circumstances. We believe these judgements are reasonable, but these statements are not guarantees of any future events or financial results, and our actual results may differ materially due to a variety of important factors, many of which are described in our most recent Annual Report on Form 10-K and our other filings with the U.S. Securities and Exchange Commission. We caution readers not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly or otherwise revise any forward-looking statements, whether as a result of new information, future events, or other factors that affect the subject of these statements, except where we are expressly required to do so by law.
SOURCE: General Motors