Tuesday, February 27, 2024
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GM, LG Chem announce $19 billion deal for EV battery supplies

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DETROIT – General Motors plans to spend $19 billion over roughly the subsequent decade to supply essential supplies to be used in electrical automobile batteries from LG Chem, the businesses mentioned Wednesday.

The long-term provide contract will see LG Chem provide GM with greater than 500,000 tons of cathode supplies – embody nickel, cobalt, manganese, aluminum – from 2026 by way of 2035, the South Korean provider said in a release.

That provide could be sufficient to energy 5 million models of EVs with a variety of greater than 300 miles, it mentioned.

The cathode supplies from an LG plant that is presently underneath building in Tennessee will provide GM’s three way partnership battery cell crops in North America.

The partnership was initially introduced in July 2022, however with out particulars round worth or manufacturing location. The unique settlement was slated to run out after 2030, however the newest iteration extends the deal one other 5 years.

EV adoption has been slower than anticipated, and automakers have been slicing prices.

LG Chem mentioned it goals to “bolster cooperation with GM within the North American market” by way of the deal.

Jeff Morrison, GM vice chairman of worldwide buying and provide chain, mentioned the “contract builds on GM’s dedication to create a powerful, sustainable battery EV provide chain to assist our fast-growing EV manufacturing wants.”

The contract is probably going one of many largest, if not the most important, EV provide offers that GM has signed. A GM spokesman didn’t instantly reply for remark.

The deal suggests GM stays dedicated to EVs, however the longer contract implies the automaker is adjusting plans to account for slower adoption than beforehand anticipated.

That is breaking information. Please verify again for added updates.

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