LG Chem and GM Strike $19 Billion Battery Deal

LG Chem has announced a major deal with General Motors, agreeing to supply 500,000 tonnes of cathode material to GM through 2035. This deal is valued at 24.7 trillion won, equivalent to $18.6 billion. With this partnership, LG Chem aims to solidify its position in the electric vehicle market in North America, in collaboration with the top U.S. automaker. The quantity of battery material being supplied is substantial, sufficient to produce around 5 million electric vehicles.

GM, a key player in the legacy automaker sector, is focused on establishing itself as a strong contender in the global EV market. This partnership will help GM further its commitment to developing a sustainable battery EV supply chain to meet the increasing demand for EV production. As automakers strive to ensure that a higher percentage of battery packs are made up of U.S.-sourced materials, there is a race among battery makers to secure significant contracts from car companies. LG Chem’s agreement with GM exemplifies this competitive landscape, as the industry works towards an increased use of domestically produced materials in battery manufacturing.

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