General Motors has signed a deal with LG Chem that could drastically improve EV battery life spans in the United States.
Last year, LG Chem announced a substantial breakthrough in EV battery production. By using single-crystal high-nickel cathodes to produce EV batteries, the company has the potential to boost EV battery life spans by as much as 30% and their capacity by 10%.
Now, GM is teaming up with the company in a deal worth around $18.6 billion to use these higher-efficiency batteries for 10 years, according to Teslarati.
LG Chem had previously expected to produce over 50,000 tons of single-crystal high-nickel cathode material every year. Under the new deal, the company will provide roughly that amount to GM alone every year from 2026 to 2035 — and the materials are set to be produced at a Tennessee factory, seemingly separate from LG Chem's previous plans to produce them in South Korea.
Under the deal, GM expects to be able to produce as many as 5 million electric vehicles with the new technology.
This development is a win for EV drivers everywhere because longer EV battery life spans means EV owners will have to shop for new vehicles (and vehicle batteries) with considerably less frequency, thus maximizing the bang for your buck for every EV purchase.
EVs are vital for reducing our reliance on dirty energy sources that pollute our planet, so any progress that makes EVs more affordable and efficient is also a win for the planet.
"We will lead the EV market in North America by keeping strategic cooperation with GM, the No. 1 automaker in the U.S.," said Shin Hak-cheol, the vice chairman of LG Chem, per Teslarati.
GM is also working with the startup Mitra Chem to produce more efficient EV batteries and is soon expected to roll out the electric Cadillac Escalade IQ SUV, which some have referred to as a "Tesla killer."
"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, the VP of Global Purchasing and Supply Chain for GM. "Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry."
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