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LG Chem and General Motors Co. recently signed a binding agreement regarding the supply of Cathode Active Material(CAM) from LG Chem to GM. The supply agreement will allow GM to meet its rapidly growing EV production requirements. The CAM, which is composed of components such as lithium, processed nickel, and other materials, represents about 40% of a battery cell’s cost.
LG Chem will supply GM with more than 950,000 tonnes of CAM through the long-term supply agreement. This is enough to produce approximately 5 million EVs. Ultium Cells LLC will use the GM CAM at its battery cells in Warren, Ohio, Spring Hill, Tennessee, and Lansing, Michigan. It is a joint venture of GM and LG Energy Solution.
GM and LG Chem are also exploring the possibility of locating a CAM manufacturing facility in North America by 2025.
Jeff Morrison (GM vice president, Global Purchasing and Supply Chain), stated that this agreement builds on GM’s commitment to creating a strong and sustainable battery raw material supply network to support our fast-growing EV production needs. LG Chem’s technical expertise, high quality, and mass production capabilities for cathode active material have been demonstrated over the past decade. This agreement also demonstrates GM’s commitment to strong supplier relations and complements our numerous recent announcements about EV supply chains.
Morrison added, “Importantly GM now has contractual engagements secured with strategic partners to supply all battery raw materials to support our goal for 1 million units of EV capability by the end of 2025.”
LG Chem will supply NCMA (nickel, cobalt, manganese and aluminum) cathode materials to EVs that are built on GM’s Ultrium Platform. The NCMA cathode product is made from LG Chem’s most advanced material technology. It is known for its outstanding stability and output. The material technology was modified with aluminum to increase stability and decrease cobalt by 70%.
Shin Hak Cheol is the CEO of LG Chem. He stated that the company will continue to be a leader in the market through close cooperation with customers.