LG Chem secured a ₩3.8 trillion ($2.6 billion) agreement to deliver cathode materials to an American buyer, marking a rare bright spot for the Korean chemical producer’s battery business. The contract, spanning from mid-November through July 2029, covers an estimated 100,000 tons of materials—sufficient for roughly 760,000 electric vehicles, according to company statements Thursday.
While LG Chem declined to identify its customer, industry watchers suggest Tesla or Panasonic as probable recipients. The timing raises questions about demand sustainability, particularly given slower EV adoption rates in key markets including the United States, where policy uncertainty has dampened sales projections.
The arrangement provides relief to operations pressured by weakened electric vehicle demand and deteriorating petrochemical markets. LG Chem’s cathode division has struggled with industry-wide overcapacity, though the company’s third-quarter operating profit climbed 36% to ₩679.7 billion despite an 11.6% revenue decline to ₩11.2 trillion.
The deal represents LG Chem’s largest cathode win since February 2024, when it signed a ₩25 trillion, eight-year supply pact with General Motors covering 950,000 tons. The company maintains annual cathode capacity of approximately 150,000 tons across facilities in South Korea and China, with a 60,000-ton Tennessee plant under construction.
Shares fell 1% in Seoul trading Friday after gaining 6.6% following the announcement, underperforming the broader Kospi index’s 2.5% decline.
