LORDSTOWN, Ohio (WKBN) – LG Chem, the owner of the Ultium battery plant in Lordstown, and General Motors announced a binding agreement Tuesday that has LG Chem supplying the automaker’s Cathode Active Material (CAM).
CAMs are basically materials that are needed to make a long-lasting battery and comprise about 40% of the cost of a battery cell.
The supply agreement includes more than 950,000 tons of Cam to GM beginning the second half of 2022 through 2030, enough for approximately 5 million units of electric vehicle production, GM said.
The CAM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solution, at its battery cell plants in Lordstown. , Spring Hill, Tennessee and Lansing, Michigan.
The Lordstown plant is expected to be up and running next month. Employment opportunities can be found on the Ultium Cells website.
GM and LG Chem will also explore the localization of a CAM production facility in North America by the end of 2025.
According to Reuters. , the U.S. Department of Energy plans to loan GM and LG Energy Solutions $2.5 billion as part of the Energy Department’s first loan for a battery cell manufacturing project under the Advanced Technology Vehicles Manufacturing loan program. The money will help with the Lordstown facility.
In a statement, Ultium said the facilities will create more than 5,000 high-tech jobs.