GM has been steadfast in its goal of overtaking Tesla as the biggest EV manufacturer in North America and as a part of its goal it has secured supply for lithium for cathode from LG Energy Solutions. It has secured supply for an overall 1 million EVs till 2025.
Lithium is a critical material for batteries and is often used as the cathode in li-ion battery cells. It is also one of the most mined minerals on the planet and for electric cars defined battery grande lithium is needed which is a bottleneck for electric cars.
GM has been developing its Ultium batteries and now this new deal with LG Energy Solutions will help to secure enough supply.
“Through the long-term supply arrangement, LG Chem plans to supply more than 950,000 tons of CAM to GM beginning the second half of 2022 through 2030, enough for approximately 5 million units of EV production. The CAM secured by GM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solutions, at its battery cell plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan,” said GM in a statement.
LG and GM will also look to localise the production of the Cathode Active Material in North America by the end of 2025.
LG Energy Solutions is what LG Chem was formerly called before it merged with Magna. GM has also closed another deal with Livent who will provide it with battery-grade lithium hydroxide in a 6-ear contract that starts in 2025.
“Livent will provide battery-grade lithium hydroxide to GM over a six-year period beginning in 2025. Over the course of the agreement, Livent will increasingly supply battery-grade lithium hydroxide to GM from its manufacturing facilities in the U.S., with the goal of transitioning 100% of Livent’s downstream lithium hydroxide processing for GM to North America. The agreement is expected to help secure supply for GM while assisting Livent in expanding its North American capabilities,” GM and Livent said in a statement.
GM has also announced deals with POSCO for a $400 million factory that will produce cathode material for EV batteries in Becancour.
GM has been ramping up its EV portfolio under Mary Barra. It has already announced the Chevrolet Blazer EV, The Chevrolet Silverado EV, the GMC Hummer EV and the Cadillac Lyriq. And there are many more EVs on their way.
