LG Chem, the chemical subsidiary of the South Korean multinational conglomerate LG, announced February 7 that the organization had signed a 24.7 trillion won ($18.6 billion) deal to supply General Motors with electric vehicle battery materials over the next ten years.

According to Nikkei Asia, the South Korean chemical company said that it would supply GM with at least 500,000 tons of cathode materials through 2035, enough to manufacture batteries for 5 million EVs. LG Chem also said that it would produce the battery materials at its Tennessee factory, which is currently under construction, starting in 2026.

"We will lead the EV market in North America by keeping strategic cooperation with GM, the number one automaker in the U.S.," said Shin Hak-cheol, the CEO of LG Chem, in a statement. “By strengthening our strategic cooperation with GM, we will jointly lead the North American EV market to a sustainable future. We aim to create unique customer value through world-class productivity and the expansion of our global production bases.”

The deal comes at a time when the growth of the global EV market has begun to slow down. According to Reuters, global sales of fully electric and plug-in hybrid vehicles (PHEVs) grew by 31% in 2023, which was down from 60% in 2022, said the market research firm Rho Motion.

"The pace of growth is slowing, but that's what's expected in growing markets like this," said Rho Motion data manager Charles Lester. "You can't double every year."