Supply Agreement Grows Ultium Battery Production Capacity
DETROIT – A July 26 supply agreement calls for LG Chem to provide General Motors over 950,000 tons of Cathode Active Material (CAM). GM says the eight-year plan will be sufficient for approximately 5 million units of EV production.
CAM is an essential battery material containing processed nickel, lithium and other materials, says GM, which accounts for about 40% of the cost of a battery cell.
GM says it plans to use CAM for its Ultium Cells LLC production, further supporting the goal of having a 1 million EV production capacity in North America by the end of 2025. The arrangement of the CAM agreement is set to take place the second half of 2022 through 2030.
“This agreement builds on GM’s commitment to create a strong, sustainable battery raw material supply chain to support our fast-growing EV production needs,” says Jeff Morrison, GM vice president of global purchasing and supply chain. “LG Chem has demonstrated technical expertise, high-quality and mass production capabilities of cathode active materials over the last decade. At the same time, this agreement demonstrates GM’s commitment to strong supplier relationships, and compliments our many other recent EV supply chain announcements.”
GM says the cathode materials LG Chem will be supplying are NCMA (nickel, cobalt, manganese and aluminum) for Ultium Platform EVs. The company says the material is known for its “excellent stability and output.” With the application of the aluminum, stability is increased while the amount of cobalt used is reduced by 70% from the previous generation of batteries, says GM.
Shin Hak Cheol, CEO of LG Chem, says the collaboration will further strengthen the company’s “position as a global leader in the market by producing the world’s best cathode materials.”
Source: General Motors
Published by The Business Journal, Youngstown, Ohio.