LG Chem and GM have announced their partnership which will involve the supply of Cathode Active Material (CAM) to one party. The first party LG will produce and supply these materials to the second party in the partnership, GM. These materials will be in use for the manufacturing of electric vehicles.
The material CAM is a major component used in the manufacturing of an EV battery. This partnership will run until 2030 and supplies have already begun. Nickel, Cobalt, Manganese, and Aluminium are among the materials that LG Chem will supply GM.
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These materials will help GM in the overall manufacturing of EVs to feed the market’s growing demand. Over the span of the partnership between LG Chem and GM, approximately 5 million units of EVs will enter production. GM will handle every manufacturing process of the cars except battery production, which Ultium Cells LLC will handle.
In this partnership, GM is relying on LG’s expertise in the mass production of CAM. This expertise will change a few things we knew about GM batteries before now. The presence of Cobalt in General Motors batteries will reduce by 70% and LG Chem will replace it with Aluminium.
This partnership is a win for both parties over the period it will last. LG will grow its dominance in the EV battery market, and GM on its part will grow its production of electric vehicles. The next generation of General Motors EVs will make use of batteries from its partnership with LG Chem.
