Through 2035, GM will invest $19 billion to purchase ingredients from LG Chem for EV batteries

According to the firms on Wednesday, General Motors intends to spend $19 billion over the course of the next ten years through a new supplier agreement to purchase essential ingredients from LG Chem for use in electric vehicle batteries.

According to a press release from the South Korean supplier, LG Chem will provide GM with over 500,000 tons of cathode materials, such as nickel, cobalt, manganese, and aluminum, between 2026 and 2035 as part of a long-term supplier agreement.

It stated that five million EVs with a range of more than 300 miles could be powered by that source.

The cathode materials for GM’s joint venture battery cell operations in North America, including three joint venture plants with an LG offshoot named Ultium Cells, will come from an LG factory that is presently being built in Tennessee.

When the agreement was first announced in July 2022, neither the production location nor the pricing were specified. Although the most recent version extends the agreement by an additional five years, the original was intended to expire after 2030.

Since EV adoption has lagged behind expectations, automakers like General Motors have been reducing expenses or postponing plans.