Panasonic picks LG Chem for high-performance cathode supply in the U.S.

23 October 2025, 13:24:24

South Korea's LG Chem has been selected to supply cathode materials for Panasonic's battery production in North America, according to industry sources. This marks LG Chem's first direct deal with Panasonic, whose primary customer in the region is Tesla. Previously, LG Chem supplied cathodes to Prime Planet Energy & Solutions, a joint venture between Toyota and Panasonic.

Panasonic operates a Gigafactory in Nevada with Tesla and launched a second facility in July. While Tesla sources NCM (nickel-cobalt-manganese) batteries from both Panasonic and LG Energy Solution, Panasonic remains the dominant supplier for the North American market.

LG Chem will provide small-particle cathodes - materials with particles under 5 micrometers that offer high energy density. These cathodes are more expensive and technically challenging to produce, which is why most manufacturers opt for bimodal cathodes that blend large and small particles. LG Chem is reportedly the leading candidate for supplying these advanced small-particle cathodes, while suppliers for other particle sizes are still being finalized.

Other South Korean firms, including EcoPro, L&F, and Posco Future M, are also in discussions with Panasonic. However, LG Chem has already been effectively chosen for the small-particle segment. Neither LG Chem nor Panasonic has commented publicly on the deal.

Panasonic is targeting a combined production capacity of 73 gigawatt-hours (GWh) across its Nevada and Kansas facilities, which will require roughly 100,000 metric tons of cathode material. Although the Kansas plant was initially expected to be fully operational by late 2026, that timeline has been pushed back.

To meet demand, LG Chem is constructing a cathode manufacturing plant in Clarksville, Tennessee. The facility aims to reach a capacity of 60,000 metric tons by 2026, with plans to double that in the future. Its first customer is expected to be Ultium Cells, the joint venture between General Motors and LG Energy Solution.

This partnership reflects LG Chem’s growing footprint in the US battery supply chain and aligns with Panasonic Energy’s broader strategy to expand its North American operations. As Panasonic Energy ramps up production to support EV growth, LG Chem's advanced cathode technology will play a key role in meeting performance and sustainability targets for next-generation batteries.Source

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