General Motors announced that it has signed a multi-year agreement with LG Chemdan Livevent Corp. to secure key raw materials for manufacturing electric vehicle batteries.
With the latest deal, GM has secured supplies for all electric vehicle battery feedstocks such as lithium, nickel, cobalt and cathode active materials. This deal puts the US auto giant on track to reach its target of producing 1 million EVs annually by 2025.
The electric vehicle market is currently booming, with most countries and car manufacturers having set their electrification targets. With the deal, GM hopes to localize its supply of EV raw materials at some point.
Under the deal, LG Chem will supply GM with 968,000 tonnes of cathode material from the second half of 2022 to 2030. This amount is said by GM to be sufficient for about 5 million EVs.
The cathode material supplied by LG Chem accounts for 40 percent of the cost of battery production. This cathode material is made of refined nickel, lithium and other materials.
Meanwhile, Livent will supply battery-grade lithium hydroxide for six years starting in 2025. Under the deal, GM and suppliers will work to localize production.
Previously, another auto giant Ford had signed China’s CATL to import cheaper lithium iron batteries. The agreement is said to cover 70% of the materials needed to make 2 million EVs annually by 2026.
