LG Chem and GM have announced a binding agreement to supply cathode active material (CAM), a key battery material consisting of treated nickel, lithium and other materials that accounts for about 40% of the cost of a battery cell.
LG Chem plans to supply more than 950,000 tons of CAM to GM from 2022 to 2030, enough to produce approximately 5 million electric vehicles. CAM will be used Ultium cells, a joint venture between GM and LG Energy Solutions, at battery cell plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.
GM and LG Chem are also exploring the possibility of localizing a CAM production facility in North America by the end of 2025.
The cathode materials that LG Chem plans to supply are NCMA (nickel, cobalt, manganese and aluminum) materials, which LG Chem describes as “a product that combines LG Chem’s best material technologies and is characterized by its excellent stability and yield.” In the latest formulation, aluminum has been added to strengthen stability while reducing the amount of cobalt used by 70% compared to the previous generation of GM batteries.
“This agreement builds on GM’s commitment to building a strong, sustainable supply chain for battery raw materials to support our rapidly growing electric vehicle production needs,” said Jeff Morrison, GM’s vice president of global procurement and supply chain. “Over the past decade, LG Chem has demonstrated the technical expertise, high quality and mass production capabilities of cathode active materials. GM now has contractual commitments with strategic partners across all battery feedstocks to support our goal of 1 million units of EV capacity by the end of 2025.”
Source: LG Chem
https://chargedevs.com/newswire/lg-chem-and-gm-reach-agreement-for-long-term-supply-of-cathode-active-material/
