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Released February 09, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--LG Chem (Seoul, South Korea) has entered a long-term agreement with General Motors Company (NYSE:GM) (Detroit, Michigan) to supply the automaker with a key component of electric vehicle (EV) batteries. The cathode materials, which are responsible for storing and releasing lithium ions during the charging and discharging of a battery, will come from a new LG plant in Tennessee. Industrial Info is tracking EV-related projects from both companies.
The contract will run from 2026 through 2035, and LG will supply more than 500,000 tons of cathode materials--enough to power 5 million units of "high-performance pure EVs with a range of 500km (kilometers) on a single charge," LG said in a February 7 press release.
The 500,000 tons is a portion of the output the companies agreed to in July 2022, after signing a comprehensive, long-term cathode-supply agreement.
LG will supply the cathode materials from its $3.2 billion plant in Clarksville, Tennessee, construction of which began in December. The plant will feature an annual production capacity of 60,000 tons, with production planned to begin in 2026 and full production to be reached by 2028. JE Dunn Construction (Kansas City, Missouri) is providing general contracting services for the project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read more in a detailed project report.
The NCMA (nickel, cobalt, manganese, aluminum) cathode materials produced at the Tennessee plant are expected to be "primarily used" by Ultium Cells--a joint venture between GM and LG Chem subsidiary LG Energy Solution (Seoul). However, the recently entered agreement is a direct contract with GM, and LG's cathode materials also can be used by GM in other EV projects.
"This contract builds on GM's commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs," said Jeff Morrison, vice president of global purchasing and supply chain for GM, in the press release.
LG Chem Chief Executive Officer Shin Hak-cheol added, "By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future."
The Ultium Cells joint venture expects construction of its EV battery-manufacturing plant in Spring Hill, Tennessee, will wrap up at the end of February. The project entails building a 2.8 million-square-foot complex that will supply battery cells to GM's Spring Hill assembly plant. Subscribers to the GMI Industrial Manufacturing Project and Plant databases can click here for more information on the battery project, and click here for a plant profile on the operational Spring Hill assembly plant.
Industrial Info is tracking $18 billion worth of active and planned battery-related projects across the U.S. from LG and $22 billion worth of total project activity from GM--much of which is attributed to EV-related projects. Subscribers to the GMI Database can click here for a full list of the LG projects and click here for the GM projects.
For information on some of the companies' other respective EV-related supply agreements, see October 9, 2023, article - Toyota Signs EV Battery-Supply Agreement with LG and June 29, 2023, article - GM Adds Another EV Battery Material Supply Agreement.
Despite the project activity across the U.S. EV landscape, the market is sending off mixed signals. The U.S. Energy Information Administration (EIA) recently cited third-party data that shows sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) in 2023 jumped by about 3.4% compared with 2022's sales; but GM, along with Ford Motor Company (NYSE:F) (Dearborn, Michigan) and Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas), have indicated they plan to slow their EV-related investments. For more information, see February 1, 2024, article - EIA: EVs, Hybrids Account for More than 16% of 2023 Light-Duty Vehicle Sales, and November 13, 2023, article - Automakers Slow EV Spending as Demand Lags Projections.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
The contract will run from 2026 through 2035, and LG will supply more than 500,000 tons of cathode materials--enough to power 5 million units of "high-performance pure EVs with a range of 500km (kilometers) on a single charge," LG said in a February 7 press release.
The 500,000 tons is a portion of the output the companies agreed to in July 2022, after signing a comprehensive, long-term cathode-supply agreement.
LG will supply the cathode materials from its $3.2 billion plant in Clarksville, Tennessee, construction of which began in December. The plant will feature an annual production capacity of 60,000 tons, with production planned to begin in 2026 and full production to be reached by 2028. JE Dunn Construction (Kansas City, Missouri) is providing general contracting services for the project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can read more in a detailed project report.
The NCMA (nickel, cobalt, manganese, aluminum) cathode materials produced at the Tennessee plant are expected to be "primarily used" by Ultium Cells--a joint venture between GM and LG Chem subsidiary LG Energy Solution (Seoul). However, the recently entered agreement is a direct contract with GM, and LG's cathode materials also can be used by GM in other EV projects.
"This contract builds on GM's commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs," said Jeff Morrison, vice president of global purchasing and supply chain for GM, in the press release.
LG Chem Chief Executive Officer Shin Hak-cheol added, "By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future."
The Ultium Cells joint venture expects construction of its EV battery-manufacturing plant in Spring Hill, Tennessee, will wrap up at the end of February. The project entails building a 2.8 million-square-foot complex that will supply battery cells to GM's Spring Hill assembly plant. Subscribers to the GMI Industrial Manufacturing Project and Plant databases can click here for more information on the battery project, and click here for a plant profile on the operational Spring Hill assembly plant.
Industrial Info is tracking $18 billion worth of active and planned battery-related projects across the U.S. from LG and $22 billion worth of total project activity from GM--much of which is attributed to EV-related projects. Subscribers to the GMI Database can click here for a full list of the LG projects and click here for the GM projects.
For information on some of the companies' other respective EV-related supply agreements, see October 9, 2023, article - Toyota Signs EV Battery-Supply Agreement with LG and June 29, 2023, article - GM Adds Another EV Battery Material Supply Agreement.
Despite the project activity across the U.S. EV landscape, the market is sending off mixed signals. The U.S. Energy Information Administration (EIA) recently cited third-party data that shows sales of hybrid vehicles, plug-in hybrid electric vehicles, and battery electric vehicles (BEVs) in 2023 jumped by about 3.4% compared with 2022's sales; but GM, along with Ford Motor Company (NYSE:F) (Dearborn, Michigan) and Tesla Incorporated (NASDAQ:TSLA) (Austin, Texas), have indicated they plan to slow their EV-related investments. For more information, see February 1, 2024, article - EIA: EVs, Hybrids Account for More than 16% of 2023 Light-Duty Vehicle Sales, and November 13, 2023, article - Automakers Slow EV Spending as Demand Lags Projections.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
