General Motors today announced two new agreements aimed at supporting its battery-electric vehicle production. The first of which builds on an existing partnership with LG Chem. This binding agreement aims to give GM a supply of Cathode Active Material (CAM). It consists of components like processed nickel and lithium plus other materials representing around 40 percent of a battery cell’s cost.
This long-term agreement sees LG Chem supply 950,000 tons of CAM to GM from the second half of 2022 to 2030. That’s enough for 5 million EVs! Additionally, the components secured will be used by Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution. Plants in Warren, Ohio, Spring Hill, Tennessee, and Lansing, Michigan will all use the newly sourced CAMs. Both companies also announced that they will explore the localization of CAM production in North America by 2025.
Alongside the new agreement with LG Chem, GM also disclosed a new one with Livent. This revolves around the supply of battery-grade lithium hydroxide over six years starting in 2025. These come from Livent’s brine-based operations in South America and play a crucial role in improving EV performance and driving range. Eventually, 100 percent of the lithium hydroxide GM gets from Livent will come from its North American operations. This partnership also aims to increase the latter’s capabilities in its home region.
General Motors aims to sell only electric vehicles from 2035 onwards. Currently, the Chevrolet Bolt EV and EUV are among the most affordable EVs on sale. On the other side of the spectrum, you have the GMC Hummer EV and the upcoming Cadillac Celestiq serving as the flagships. Chevrolet recently showed the Blazer EV and Silverado EV with the Equinox following shortly. Cadillac recently launched the Lyriq SUV while Buick aims to have a full subbrand of EVs using the Electra nameplate.