General Motors (GM) has struck a monumental $18.8 billion deal with LG Chem, securing a steady supply of crucial materials needed for EV battery production. This strategic partnership underscores GM’s commitment to accelerating its presence in the rapidly evolving EV market.
Under the terms of the agreement, LG Chem will provide GM with more than 500,000 tons of cathode materials, including nickel, cobalt, manganese, and aluminum. These materials are the lifeblood of EV batteries, powering the vehicles that are driving the future of sustainable transportation. With this robust supply chain in place, GM will have the capacity to manufacture approximately 5 million EVs, starting from 2026 and extending through 2035.
The deal comes at a pivotal moment for GM, as the company continues to make strides in its EV transition. Despite facing challenges such as inventory management and profitability concerns, GM has shown promising progress with vehicles like the Chevrolet Bolt EV/EUV, which emerged as the third best-selling EV model in the U.S. in 2023.
The image in this article is courtesy of GM.
