General Motors Company (NYSE:GM) has agreed a multibillion-dollar battery supply deal with South Korean firm LG Chemicals.
According to LG Chem, the deal is worth 24.7 trillion won (US$18.61 billion) and will see it supply the carmaker with electric vehicle (EV) battery cathodes between 2026 and 2035.
Half a million tons of cathode materials will be shipped to General Motors as part of the agreement, providing enough to power five million electric vehicles, as per LG Chem.
For LG Chem, the deal will aid its move into the North American market, according to the company, where a manufacturing plant is already being built in Tennessee.
General Motors is among carmakers to face stiff competition in securing supplies of finite battery parts meanwhile, as firms look to increasingly switch away from internal combustion engine-powered cars to electric models.
“This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs,” vice president Jeff Morrison commented.
“By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future,” LG Chem boss Shin Hak-cheol added.