LG Chem and General Motors Co. have announced 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 electric vehicle (EV) production needs.
CAM is a key battery material consisting of components such as processed nickel, lithium and other materials representing about 40 percent 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 second half 2022 through 2030, enough for approximately 5 million units of EV production. The CAM secured by GM will be used by Ultium Cells, a joint venture between GM and LG Energy Solution, at its battery cell plants in Warren, Ohio; Spring Hill, Tenn.; and Lansing, Mich.
GM and LG Chem also will 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,
