LG Chem Signs Deal With GM to Build $3 Billion EV Battery Cathode Factory — The Largest of Its Kind in the US

By Jace Dela Cruz

Feb 13, 2024 12:27 AM EST

LG Chem has entered into an agreement with General Motors (GM), which includes a plan to build a massive battery cathode factory in Tennessee with an estimated cost of $3 billion.

According to Electrek, the deal, valued at $19 billion, entails LG Chem's long-term cathode material supply contract with GM.

(Photo : STR/AFP via Getty Images)
BYD electric cars waiting to be loaded onto a ship are seen stacked at the international container terminal of Taicang Port in Suzhou, in China's eastern Jiangsu province on February 8, 2024.

LG Chem Signs Deal With GM

In a joint statement, LG Chem and GM said the contract spans from 2026 to 2035, coinciding with the anticipated commencement of operations at the Tennessee plant. 

Under this agreement, LG Chem will supply GM with over 500,000 tons of cathode materials sufficient to power approximately 5 million high-performance pure EVs with a range of 500 kilometers on a single charge.

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Largest in the US

GM's Vice President of Global Purchasing and Supply Chain, Jeff Morrison, emphasized the significance of the collaboration, highlighting GM's commitment to establishing a robust and sustainable battery EV supply chain. 

"Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry," Morrison said in the statement.

The construction of the cathode plant in Tennessee, which is touted as the largest of its kind in the United States, commenced in December. 

With an annual production capacity of 60,000 tons, the facility is poised to serve as a vital hub for the production of customized cathode materials tailored to North American EV specifications. 

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