Today, GM and Livent signed a multi-year supply deal under which Livent would provide GM with battery-grade lithium hydroxide made from lithium collected at its South American brine-based locations. GM’s efforts to create more potent, long-lasting electric vehicles depend on lithium hydroxide. The new battery cell factory that GM is now constructing in Ohio will use batteries powered by Livent’s lithium hydroxide.
According to said Jeff Morrison , GM vice president of global purchasing and supply chain, “We are developing a solid, sustainable, scalable, and secure supply chain to assist fulfill our rapidly expanding EV production needs.” Over the life of the deal, we will further localize the supply chain for lithium in North America. Additionally, it reflects our dedication to solid supplier relationships and is consistent with our strategy for responsible sourcing and supply chain management.
For the following six years, GM will purchase battery-grade lithium hydroxide from Livent. With the aim of moving all of Livent’s downstream lithium hydroxide processing for GM to North America, Livent will gradually supply GM with battery-grade lithium hydroxide from its facilities in the United States over the course of the contract.
Through industry and multi-stakeholder channels, GM and Livent are equally committed to maintaining healthy supply chains and conducting ethical business. General Motors joined the Initiative for Responsible Mining Assurance (IRMA) in 2021 and the Responsible Minerals Initiative (RMI), and it aims to achieve carbon neutrality in its global operations and products by 2040. Livent has a gold grade for sustainability from EcoVadis, is actively participating in an IRMA third-party review, and has stated a target of becoming completely carbon neutral by 2040.
According to Paul Graves, president and chief executive officer of Livent, “We are thrilled to start this long-term collaboration with GM, one of the most iconic companies in the automotive industry and a driving force in the transition to electrification.” We look forward to developing a substantial cooperation with GM that will support its electric vehicle strategy, its supply chain aspirations, and the future needs of its expanding EV fleet for dependable, high-performance lithium products.
During its results call, GM will discuss the agreement, and Livent will do the same as part of its upcoming second quarter 2022 earnings call on August 2 .
With a lengthy and successful track record of creating high-quality performance lithium compounds, Livent is a fully integrated lithium company. Since over 80 years ago, Livent has collaborated with its clients to utilise lithium in a sustainable and safe manner that powers the world.
WHY THIS IS IMPORTANT Nowadays, it seems like every firm announces a battery supply contract every day, but for those who pay closer attention, it may be fascinating to see the parts fit together when manufacturers find sources for battery chemistry.
Some people are optimistic that with enough electric vehicles on the road, seemingly insurmountable goals may be realized, while others are skeptical about how all of these businesses will obtain the lithium, cobalt, and other minerals required to manufacture those batteries. Pessimists observe this shuffle and speculate that perhaps we are merely rearranging the Titanic’s deck chairs as it goes down.
As these agreements are worked out, there may be a greater demand for resources, which would increase production and make climate objectives much more feasible.
By GM, the featured image.
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