GM will produce 1 million electric cars.
General Motors CO said during the week that it has signed multi-year agreements with LG Chem Ltd and Livent Corp to provide the raw material used in the production of electric car batteries.
With the latest deals, GM says it is gearing up to supply battery raw materials, including lithium, nickel, cobalt and cathode active material, and is on track to produce 1 million vehicles by the end of 2025. electricity within the year in North America
Spurred on by the US government and seeking a market lead in the rise of electric cars, GM automakers are signing deals to acquire key battery materials with the goal of eventually sourcing them locally.
LG Chem will supply GM with 968,000 tons of cathode material starting in the second half of this year through 2030, enough for 5 million electric vehicles, GM said.
According to the company, the cathode material, which is made from processed nickel, lithium and several other materials, accounts for about 40 percent of the battery cell’s cost.
The carmaker will receive lithium hydroxide batteries from Livend for 6 years starting in 2025, although neither company has specified the quantity.
In both agreements reached, GM and its suppliers will work to localize production.
GM’s statement came a week after Ford Motor Co signed a deal with Chinese firm CATL to import lower-cost lithium iron batteries. Ford said that their various agreements cover over 70 percent of the raw material needed for the annual production of 2 million cars by 2026.