GM partners with LG Chem for supply of cathode active material for EVs
MANILA: LG Chem and General Motors Co. have established a binding agreement for the supply of cathode active material (CAM) from LG Chem to GM. The supply agreement will support GM in meeting its rapidly expanding EV production needs. CAM, which makes up around 40% of the cost of a battery cell, is an essential battery material made up of components such as processed nickel, lithium, and other materials.
KEY TAKEAWAYS
How many tons of CAM will LG Chem supply to GM?
LG Chem will provide GM with more than 950,000 tons of CAM over eight years.What is the EV production capacity target of GM in North America by end of 2025?
GM targets to have one million EV production capacity in North America by the of 2025.In accordance with the long-term supply agreement, LG Chem promises to provide GM more than 950,000 tons of CAM starting in the second half of 2022 and continuing through 2030, which is sufficient for the production of about five million electric vehicles. The Ultium Cells LLC, a joint venture between GM and LG Energy Solution, will use the CAM that GM obtained from its battery cell factories in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.
GM and LG Chem will also explore the possibility of localizing a CAM production site in North America by 2025.
In a statement, GM Vice President for Global Purchasing and Supply Chain Jeff Morrison said, “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 one million units of EV capacity by the end of 2025.”
LG Chem promises to provide NCMA (nickel, cobalt, manganese, and aluminum) cathode materials for EVs manufactured on GM's Ultium Platform. The NCMA cathode material is a product that combines the best material technology offered by LG Chem and is distinguished by outstanding output and stability. In order to increase stability and reduce the quantity of cobalt required in GM's previous generation of batteries by 70%, aluminum was added to the material technology.
LG Chem Chief Executive Officer Shin Hak Cheol said, “Based upon a close collaboration with customers, LG Chem will further strengthen its position as a global leader in the market by producing the world’s best cathode materials.”
Photos from General Motors
Also read: GM educates public on electric vehicles through 'EV Live'
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