GM, LG Chem reach agreement for supply of cathode active material for EVs

General Motors and LG Chem have announced an agreement for LG Chem to supply cathode active material (CAM) to the automaker for electric vehicle production. CAM is a key battery material comprising processed nickel, lithium, and other materials that represents about 40% of the cost of a battery cell.

Through the long-term arrangement, LG Chem plans to supply more than 950,000 tons of CAM to GM beginning the second half of 2022 through 2030, enough for approximately 5 million units of EV production. The CAM secured by GM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solution, at its battery cell plants in Warren, Ohio; Spring Hill, Tenn.; and Lansing, Mich.