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GM to spend $19 billion via 2035 to supply EV battery supplies from LG Chem

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DETROIT — General Motors plans to spend $19 billion over roughly the following decade via a brand new provider deal to supply vital supplies to be used in electrical car batteries from LG Chem, the businesses stated Wednesday.

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

That offer can be sufficient to energy 5 million models of EVs with a spread of greater than 300 miles, it stated.

The cathode supplies from an LG plant that is at the moment beneath building in Tennessee will provide GM’s three way partnership battery cell crops in North America, together with three joint venture plants with an LG spinoff referred to as Ultium Cells.

The partnership was initially announced in July 2022, however with out particulars round value 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 akin to GM have been chopping prices or delaying plans.

LG Chem stated it goals to “bolster cooperation with GM within the North American market” via the deal.

Jeff Morrison, GM vp of world buying and provide chain, stated the “contract builds on GM’s dedication to create a powerful, sustainable battery EV provide chain to help 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.

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.

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