GM to secure long-term CAM supply from LG Chem

General Motors announced that it has secured a long-term supply of Cathode Active Material (CAM) from LG Chem. Per the American automotive brand, more than 950,000 tons of CAM will be provided by the Korean chemical company for over eight years. The supply, said GM, will be enough for the production of approximately five million units of EVs.

CAM is a key battery material consisting of components like processed nickel, lithium, and other materials representing about 40 percent of the cost of a battery cell.

“This agreement builds on GM’s commitment to create a strong, sustainable battery raw material supply chain to support our fast-growing EV production needs. LG Chem has demonstrated technical expertise, high-quality and mass production capabilities of cathode active materials over the last decade. At the same time, this agreement demonstrates GM’s commitment to strong supplier relationships, and compliments our many other recent EV supply chain announcements,” said GM VP Jeff Morrison.

LG Chem will begin supplying GM with the materials by the second half of 2022. The CAM secured by GM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solution, at its battery cell plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.

GM and LG Chem will also explore the localization of a CAM production facility in North America by the end of 2025.

“Based upon a close collaboration with customers, LG Chem will further strengthen its position as a global leader in the market by producing the world’s best cathode materials,” said LG Chem CEO Shin Hak Cheol.

Photos from GM and LG Chemical

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