South Korea’s LG Chem has signed a multiyear contract to supply electric-vehicle battery cathode materials to a U.S. customer, the company said in a regulatory filing on Wednesday.
The deal is valued at $2.8 billion and covers deliveries from Nov. 15, 2025, through July 31, 2029. LG Chem noted that the final contract value may fluctuate depending on raw-material prices and currency exchange rates. The company did not disclose the buyer, citing a confidentiality agreement.
The announcement stands out because it comes at a time when the global EV market is facing a “chasm” — an industry term referring to a temporary demand slowdown that has prompted several automakers to scale back production plans.
Analysts say the contract highlights growing U.S. demand for battery materials sourced outside China. With Washington’s Inflation Reduction Act offering incentives for non-Chinese supply chains, manufacturers are increasingly turning to Korean suppliers with established high-nickel cathode capabilities.
LG Chem has been expanding its global footprint to capture that demand. The company currently operates cathode-material facilities in Korea and China with a combined annual capacity of 150,000 tons, and is building a 60,000-ton plant in Tennessee, which is set to become one of the largest cathode-material production sites in the United States.
LG Chem said the new contract strengthens its position in the North American EV supply chain and aligns with U.S. efforts to diversify away from China.
