A legally binding agreement for the supply of cathode active material was recently disclosed by GM and LG Chem (CAM). The agreement will help GM achieve its growing EV production requirements. Around 40% of the price of a battery cell is made up of CAM, a key battery component made of processed nickel, lithium, and other materials.
In order to meet our rapidly expanding EV production needs, GM is committed to developing a solid, sustainable battery raw material supply chain. Vice President of Global Purchasing and Supply Chain at GM, said Jeff Morrison . Over the past ten years, LG Chem has proven its technical prowess, ability to produce cathode active materials in large quantities, and excellent quality. In addition, this deal supports our numerous other recent EV supply chain announcements and underscores GM’s dedication to solid supplier relationships.
In accordance with the conditions of the contract, LG Chem will give GM more than 950,000 tons of CAM over an eight-year period. This amount is sufficient to allow GM to produce 5 million electric vehicles. Ultium Cells LLC, a joint venture between GM and LG Energy Solutions, will use the CAM obtained by GM to support GM’s objective of achieving 1 million EV production capacity in North America by the end of 2025.
Morrison continued: “It’s significant that GM now has contracts in place with strategic partners for all battery raw materials to fulfill our goal of 1 million units of EV capacity by the end of 2025.
In addition to the deal on CAM supply, GM and LG Chem will look into localizing CAM production in North America by the middle of the decade. This would increase battery availability and decrease battery costs while also bringing employment and investment to the area.
For GM’s Ultium Platform electric vehicles, LG Chem intends to supply nickel, cobalt, manganese, and aluminum NCMA (nickel, cobalt, manganese, and aluminum) cathode materials. The greatest material technology from LG Chems is distinguished by outstanding output and stability. A new high-nickel material has also been created to increase stability while decreasing the amount of cobalt required in batteries, which will result in considerable increases in EV range.
The goal of GM is to produce 1 million electric vehicles in North America by the end of 2025. To achieve this goal, GM has been trying to increase its EV manufacturing capacity in recent years. Another crucial step toward achieving this objective is the collaboration with LG Chem.
According to LG Chem CEO Shin Hak Cheol, the company will further solidify its position as a market leader by providing the best cathode materials on the basis of tight customer engagement.
As we’ve frequently noted at CleanTechnica, as more and more automakers switch to producing electric cars and other businesses use battery storage, it will become increasingly difficult to find sources of battery materials. The issue lies in extracting these elements from the ground, turning them into components that can be utilized to actually create batteries, and then refining and treating those materials.
Although both the public and private sectors will need to make significant investments, we can tell that GM is taking this task seriously thanks to yet another agreement for battery materials.
By GM, the featured image.
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