General Motors and POSCO Chemical announced a plan to form a joint venture related to lithium-ion battery materials – specifically, Cathode Active Material (CAM).
The joint venture – if approved – is expected to construct a factory in North America to process critical battery materials for GM’s Ultium electric vehicle platform.
Those cathode active materials would be supplied to Ultium Cells – GM and LG Chem’s LG Energy Solution joint venture – that will produce batteries for EVs. GM explains that CAM represents about 40% of the cost of a battery cell.
Two Ultium Cells plants are already under construction in the U.S., while two more will be announced later this decade.
“The new facility will supply the Ultium Cells LLC facilities GM and LG Energy Solution are building in Lordstown, Ohio and Spring Hill, Tennessee. Two more U.S.-based Ultium cell plants are planned by mid-decade as GM drives mass adoption of EVs with high-volume Ultium-powered EVs, including a Chevrolet crossover priced around $30,000.”
The location of the CAM factory will be announced later, while the non-binding term sheet indicates production start in 2024.
General Motors intends to launch more than 30 all-electric models globally by 2025, including GMC Hummer EV, Cadillac Lyriq and Chevrolet Silverado EV.
Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain said:
“Our work with POSCO Chemical is a key part of our strategy to rapidly scale U.S. EV production and drive innovation in battery performance, quality and cost. We are building a sustainable and resilient North America-focused supply chain for EVs covering the entire ecosystem from raw materials to battery cell manufacturing and recycling.”
Kyungzoon Min, the CEO of POSCO Chemical said:
“We are very pleased to participate in the global battery supply chain project with General Motors. Through close partnership, we will innovate battery materials and contribute to accelerate the adoption of EVs based on our world-class product development, mass production capacity, and raw materials competitiveness.”
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