LG Chem penned a long-term cathode material supply contract with General Motors Co GM worth KRW 25 trillion ($19 billion).
As per the deal, LG Chem will supply General Motors with more than 500,000 tons of cathode materials, enough to power 5 million units of high-performance pure EVs with a range of 500km on a single charge.
LG Chem boosted cooperation with General Motors in the North American market by using its cathode plant in Tennessee, U.S., as a global battery material production hub.
Read: GM Chief Mary Barra Rewrites Roadmap: Plug-In Hybrids To Deliver Green Goals As EV Growth Slows
The long-term supply contract will start from 2026 through 2035.
Jeff Morrison, General Motors vice president, Global Purchasing and Supply Chain said, “This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs. Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”
Related: GM CEO Mary Barra Says 2024 Is The Year To ‘Really Execute’ And Grow EV Business
Last month, General Motors reported a fourth-quarter FY23 sales decline of (0.3)% year-on-year to $42.98 billion, beating the analyst consensus estimate of $38.97 billion. Adjusted EPS of $1.24 beat the consensus estimate of $1.16.
The company projects FY24 adjusted EPS of $8.50 – $9.50 versus a consensus of $7.83. The company projects adjusted automotive free cash flow of $8.0 billion – $10.0 billion. It eyes capital spending of $10.5 billion – $11.5 billion.
Also Read: California Judge Urges GM’s Cruise To Raise Settlement Offer By 1.5x In Robotaxi Accident Case
Price Action: GM shares are trading higher by 0.64% at $38.28 on the last check Wednesday.
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