GM has signed a new $18.6 billion deal with LG Chem to secure 500,000 tons of cathode materials from 2026 and 950,000 tons of cathode materials by 2030. The materials, supplied from LG’s Tennessee facility, will support the production of upwards of 5 million new EVs. General Motors CEO Mary Barra inked the new deal during a visit to Seoul, South Korea earlier this week.
Per a report from Bloomberg, Barra’s recent visit to Seoul also included a meeting with battery producer Samsung SDI Co.
LG’s cathode production facility in Tennessee was completed this past December, and has an annual capacity of 60,000 tons. The majority of the facility’s production will supply materials for new Ultium-powered vehicles, while a portion will supply battery components to Ford, Tesla, and Hyundai. The facility was announced in 2022 as part of a $3 billion investment on the part of LG Energy Solution, and is expected to create over 850 new jobs.
Back in November, General Motors marked the one-year anniversary of construction for the GM Ultium Cathode Active Material (CAM) battery plant in Quebec, Canada. The project, which was announced in March of 2022, is part of a partnership between General Motors and Posco Chemical, with a $500 million investment earmarked for the facility construction. The new plant is scheduled to open in 2025, with an initial goal of producing 30,000 tons of cathode materials annually.
General Motors aims to produce between 200,000 and 300,000 Ultium-based EVs in North America this year, pulling back on its original target of 400,000 EVs. The new all-electric vehicles will be produced across the Chevy, GMC, Cadillac, and BrightDrop brands. General Motors plans to follow consumer demand when it comes to setting EV production goals, with the automaker forecasting a rise in demand from roughly 7 percent during 2023, to at least 10 percent in 2024. General Motors says it’s still on track to reach an annual EV production capacity of 1 million EVs in North America by the end of the 2025 calendar year.
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