Just recently, GM CEO Mary Barra stated that the veteran automaker can still outsell Tesla in the United States’ electric vehicle market by the middle of the decade. This target is ambitious, but GM seems quite serious about its EV efforts nonetheless, with the company recently announcing that it has secured enough cathode active material for 5 million electric cars.
As noted by GM in a press release, LG Chem will be providing the veteran American automaker with more than 950,000 tons of Cathode Active Material (CAM) over eight years. This would reportedly be enough for about 5 million units of electric vehicle production. LG Chem will be supplying GM with cathode active material starting from the second half of 2022 through 2030.
The cathode active material that GM will secure would be used by Ultium Cells LLC, a joint venture between General Motors and LG Energy Solution, at battery plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan. GM and LG Chem will also be exploring the localization of a dedicated CAM production plant in North America by the end of 2025.
LG Chem will be supplying NCMA (nickel, cobalt, manganese, and aluminum) cathode materials for electric vehicles built on GM’s Ultium platform. The use of aluminum is expected to decrease the amount of cobalt used in GM’s batteries by 70%.
Jeff Morrison, GM vice president, Global Purchasing and Supply Chain, noted that the cathode active material deal with LG Chem could help General Motors reach its goal of 1 million units of EV capacity by the end of 2025.
“This agreement builds on GM’s commitment to create a strong, sustainable battery raw material supply chain to support our fast-growing EV production needs. LG Chem has demonstrated technical expertise, high-quality and mass production capabilities of cathode active materials over the last decade.
“At the same time, this agreement demonstrates GM’s commitment to strong supplier relationships, and compliments our many other recent EV supply chain announcements. Importantly, GM now has contractual commitments secured with strategic partners for all battery raw material to support our goal of 1 million units of EV capacity by the end of 2025,” Morrison said.
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