General Motors signs agreement with Posco Chemical

The agreement will be valid from 2023 to 2025


An editor at eMobilCar

  • 2 min read

General Motors has signed a binding purchase agreement for active cathode material (CAM) with Posco Chemical. Under the agreement, which runs from 2023 to 2025, Posco will supply material to Ultium Cells from its plant in Gwangyang, South Korea.

The GM-LG Energy Solutions joint venture will then use Posco's cathode active material at its battery manufacturing plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.

The new agreement complements GM's joint venture with Posco, which reportedly includes a cathode materials plant in the Canadian province of Quebec. According to Posco, construction of the plant has already begun.

The joint venture is called Ultium CAM and was completed in May. The joint venture is owned by Posco Chemical with a controlling interest (85%), the capital of both partners is a total of 327 million US dollars (equivalent to just over 304 million euros).

To ensure stable operation during the launch phase, the CAM joint venture has signed a long-term contract with Ultium Cells for eight years and a supply of 30,000 tons of CAM per year. The construction of the plant is scheduled to be completed in the second half of 2024.

General Motors recently entered into battery material supply agreements with LG Chem and Livent.

GM has contracted to source all battery feedstock to meet its goal of one million electric vehicles in North America by the end of 2025. This includes lithium, nickel, cobalt and full CAM supply

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