General Motors is showing more evidence of its commitment to the future of electric vehicles by signing a nearly $19 billion partnership with the same Korean company that’s helping produce EV batteries in Lordstown.

LG Chem, which partnered earlier with GM to build the Ultium Cells plant in Lordstown, announced on Wednesday that it has secured a long-term cathode material supply contract with General Motors.

LG Chem said in a news release that it aims to bolster cooperation with GM in the North American market by utilizing its cathode plant in Tennessee as a production hub for the global battery material market.

Late last year, LG Chem began construction of America’s largest cathode plant in Tennessee with an expected annual production capacity of 60,000 tons.

LG Chem plans to produce customized cathode materials optimized for North American EVs from the development stage.

LG Chem plans to supply North American-sourced cathode materials to GM starting in 2026, coinciding with the start of production of its cathode materials plant in Tennessee.

The nickel, cobalt, manganese, and aluminum cathode materials produced in Tennessee are expected to be primarily used by Ultium Cells.

As this supply agreement is a direct contract with GM, LG Chem’s cathode materials may also be used by GM in other EV projects.

LG Chem says it intends to utilize its local supply chain to ensure that customers, including GM, can meet the EV subsidy criteria set by the U.S. Inflation Reduction Act.

The long-term supply contract to start in 2026, and run through 2035, LG Chem will supply GM with more than 500,000 tons of cathode materials enough to power 5 million units of high-performance pure EVs with a range of 500km on a single charge.

Following a comprehensive agreement in July 2022 for a long-term supply of cathode materials, this supply contract strengthens the cooperation between the two companies and specifies a portion of the agreed volume.

“This contract builds on GM’s commitment to create a strong, sustainable battery EV supply chain to support our fast-growing EV production needs,” said Jeff Morrison, GM vice president, Global Purchasing and Supply Chain. “Importantly, this work with LG Chem will happen in Tennessee and strengthens the North American supply chain at a critical time for the industry.”