GM Establishes New Joint Venture to Produce Important EV Materials

Less than two years after GM announced a huge $ 2.2 billion investment to completely refurbish the facility to manufacture a variety of all-electric trucks and SUVs, production is now in the former Detroit-Hamtramck. It will start at the assembly plant.

Photo by Jeffrey Sauger of General Motors

Detroit – General Motors We are planning to establish a new joint venture with a Korean chemical company to produce the important materials needed for EV batteries. This is an important move to manage the supply chain and reduce the potential for future disruption.

Detroit automakers said Wednesday that they would sign a non-binding term sheet with POSCO Chemical to establish a joint venture and will soon conclude a final agreement.

GM shares rose 4% during Wednesday morning trading to around $ 60.30 per share.

Both companies plan to open a new facility in North America in 2024. GM said the plant will process an important battery material known as GM’s Cathode Active Material (CAM) for electric vehicles.

Automakers said CAM accounts for about 40% of the cost of battery cells. GM’s new battery uses a cathode made of nickel, cobalt and other materials.

GM and other automakers are struggling to consolidate their electric vehicle battery supply chains and bring them ashore to reduce costs and reduce the risk of supply chain disruption.

The Biden administration also urged companies to bring jobs to the United States following the ongoing global. Shortage of semiconductor chips – Mainly supplied from Asia – causes a large factory closure.

The car maker refused to give specific details such as costs and planned facility locations. Announced battery factory Before the final agreement is signed for GM in North America.

“This will be a significant investment for both GM and POSCO,” Doug L. Parks, executive vice president of global product development, purchasing and supply chain, told the media Wednesday.

GM Establishes New Joint Venture to Produce Important EV Materials

Source link GM Establishes New Joint Venture to Produce Important EV Materials

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