LG Chem inks long-term EV battery component supply deal with GM

SEOUL, July 27 (Yonhap) -- LG Chem Ltd. said Wednesday it has clinched a long-term supply agreement with General Motors Co. to provide the U.S. carmaker with key materials for electric vehicle (EV) battery cells.

LG Chem, the country's leading chemical firm, will supply more than 950,000 tons of cathode materials under the eight-year binding contract with GM starting in the second half of this year through 2030, enough for approximately 5 million units of EV production, the South Korean chemical company said in a release.

Cathodes consist of components like processed nickel, cobalt, manganese and aluminum, and represent about 40 percent of the cost of a battery cell.

The cathodes will be supplied to Ultium Cells LLC, a joint venture between GM and LG Energy Solution Ltd., LG's battery-making unit that hived off from LG Chem last year.

Ultium Cells runs battery cell plants in Ohio, Tennessee and Michigan.

elly@yna.co.kr
(END)