LG Chem to Supply Battery Cathode Materials to GM for 8 Years, Covering 5 Million Electric Vehicles

Over 950,000 Tons of Next-Generation NCMA Cathode Materials for Electric Vehicle Batteries

LG Chem Vice Chairman and CEO Shin Hak-cheol and GM CEO Mary Barra are taking a commemorative photo after signing the Ultium Cells joint venture agreement in December 2019. Photo by LG Chem

[Asia Economy Reporter Donghoon Jeong] LG Chem will supply cathode materials capable of producing 5 million electric vehicles over 8 years to GM, the No.1 automobile company in the United States.

On the 27th, LG Chem announced that it had signed a comprehensive agreement with GM for the supply of cathode materials. Through this agreement, LG Chem will supply more than 950,000 tons of cathode materials from the second half of this year until 2030, which is enough to produce batteries for approximately 5 million high-performance electric vehicles. The cathode materials secured by GM will be utilized by Ultium Cells, a joint venture with LG Energy Solution.

Cathode materials are a key component accounting for about 40% of the battery production cost. They determine the core performance of the battery such as capacity and lifespan. Depending on the composition of cathode materials like NCM (Nickel-Cobalt-Manganese) and NCA (Nickel-Cobalt-Aluminum), the properties of the entire battery cell vary and the battery is named accordingly. This highlights their critical role in battery performance.

The company stated, "As the electric vehicle battery market rapidly expands, GM, which requires stable supply of cathode materials, highly evaluated LG Chem’s high-nickel cathode material technology, leading to this agreement."

The cathode materials supplied by LG Chem are next-generation NCMA (Nickel-Cobalt-Manganese-Aluminum) cathode materials for electric vehicle batteries. NCMA cathode materials are products that embody LG Chem’s top material technology, characterized by increasing the nickel content, which determines energy density, to about 90% while applying aluminum to enhance stability, resulting in excellent stability and output.

LG Chem plans to promote localization in North America by 2025 and establish a long-term cooperative relationship with GM based on securing stable production capacity.

Jeff Morrison, Vice President of GM, said, "LG Chem has proven its cathode material technology and high-quality mass production capability through a decade of cooperation with GM. Through this agreement, we can establish a sustainable battery supply chain for the rapidly growing electric vehicle market."

Shin Hak-cheol, Vice Chairman and CEO of LG Chem, said, "Based on close cooperation with customers, we will produce world-class cathode materials and further strengthen our position as a global market leader."

This content was produced with the assistance of AI translation services.