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Detroit – General Motors The two companies said on Wednesday they plan to spend $19 billion over roughly the next decade to buy key materials needed for electric vehicle batteries from LG Chem.
South Korean supplier LG Chem will supply more than 500,000 tons of cathode materials, including nickel, cobalt, manganese and aluminum, to General Motors from 2026 to 2035 under a long-term supply contract. said in a press release.
The company said the supply is enough to power 5 million electric vehicles with a range of more than 300 miles.
The cathode materials from the LG plant currently under construction in Tennessee will be supplied to General Motors’ joint venture battery plants in North America.
The partnership was initially announced in July 2022, but no details on price or production location were revealed. The original deal was set to expire after 2030, but the latest version extends it for another five years.
Adoption of electric vehicles has been slower than expected and automakers have been cutting costs.
LG Chem said its goal is to “strengthen cooperation with General Motors in the North American market” through the deal.
“This contract builds on GM’s commitment to creating a strong, sustainable battery electric vehicle supply chain to support our rapidly growing electric vehicle production needs,” said Jeff Morrison, GM’s vice president of global purchasing and supply chain. .”
The contract is likely to be one of the largest, if not the largest, electric vehicle supply agreement GM has ever signed. A GM spokesman did not immediately respond for comment.
The deal shows GM remains committed to electric vehicles, but the longer contract means the automaker is adjusting plans to cope with slower adoption than previously expected.
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