Home / Business and Economy / LG Chem Inks Landmark $2.6B EV Battery Materials Deal in the US
LG Chem Inks Landmark $2.6B EV Battery Materials Deal in the US
15 Nov
Summary
- LG Chem signs $2.6B EV battery materials contract with US client
- Deal runs until 2029, one of LG Chem's largest battery materials deals
- Company investing $1.4B to build new 60,000-ton cathode plant in Tennessee
On November 15, 2025, LG Chem, the chemicals division of South Korean conglomerate LG Group, announced a significant milestone in its global expansion. The company has signed a lucrative $2.6 billion electric vehicle (EV) battery materials contract with a client located in the United States.
The deal, which is set to run until the end of July 2029, is one of LG Chem's largest battery materials agreements to date. While the company did not disclose the name of the client, citing a confidentiality agreement, the sheer scale of the contract underscores the growing demand for EV battery components in the US market.
To further bolster its presence in the region, LG Chem is investing $1.4 billion to build a new cathode production facility in the US state of Tennessee. The plant, which is scheduled to become operational next year, will have an annual production capacity of 60,000 tons of cathode materials. General Motors and Toyota are understood to be among the main customers for the new facility.
The news comes at a time when the US EV market is undergoing a significant shift. While demand for battery electric vehicles (BEVs) has fallen sharply since the Trump administration's removal of tax incentives under the Inflation Reduction Act, sales of hybrid-electric vehicles have seen a sharp increase of an estimated 25% year-to-date.
LG Chem's strategic move to secure this major contract and expand its US manufacturing capabilities positions the company as a key player in the evolving EV battery supply chain, catering to the diverse needs of the American automotive industry.
