GM signs agreements with suppliers to reach 1 million electric vehicle capacity by 2025

The new GM logo is seen on the facade of General Motors’ headquarters in Detroit, Michigan, the United States, March 16, 2021. Picture taken March 16, 2021. REUTERS/Rebecca Cook/File Photo

Sign up now for FREE unlimited access to Reuters.com

to register

July 26 (Reuters) – General Motors Co (GM.N) announced on Tuesday that it had signed multi-year contracts with LG Chem Ltd (051910.KS) and Livent Corp. has signed [RIC:RIC:LIVEN.UL] Securing important raw materials for the production of electric vehicle batteries.

With the latest deals, GM said it has prepared supplies for all battery raw materials, including lithium, nickel, cobalt and cathode-active material, and is on track to meet its goal of producing 1 million electric vehicles annually in North America by the end of 2025.

Spurred on by the US government and looking to get ahead in a booming electric vehicle market, automakers are making deals to source key inputs for batteries with the goal of eventually localizing supply.

Sign up now for FREE unlimited access to Reuters.com

to register

LG Chem will supply GM with 968,000 tons of cathode material from the second half of 2022 to 2030, enough for about 5 million electric vehicles, GM said.

Cathode material made from processed nickel, lithium and other materials accounts for about 40% of the cost of a battery cell, according to the company.

The automaker will source battery-grade lithium hydroxide from Livent over a six-year period beginning in 2025, though neither company is specifying the quantity.

In both agreements, GM and suppliers will work to localize production.

GM’s announcement comes about a week after Ford Motor Co (FN) signed China’s CATL (300750.SZ) to import lower-cost lithium-iron batteries. Ford said its various agreements cover 70% of the materials it needs to produce 2 million electric vehicles annually by 2026. (https://reut.rs/3cGcVX0)

Sign up now for FREE unlimited access to Reuters.com

to register

Reporting by Yuvraj Malik in Bengaluru; Editing by Krishna Chandra Eluri

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.