This joint venture will provide materials for GM’s Ultium batteries
Cathode active materials will be processed at the facility
The factory is due to open in 2024
General Motors and South-Korean company Posco Chemical have signed a deal that will see the two entities join forces to built a factory in North America to process battery materials.
This operation will process cathode active materials in order to supply General Motors with the raw materials needed to produce its Ultium range of batteries.
This decision is due to the fact that General Motors uses a high percentage of minerals mined in the North America, so it is more efficient to process them locally instead of shipping them to Asia, where most processing facilities are currently located.
The joint venture should produce enough refined materials to supply its four Ultium battery plants, of which two are still to be built in collaboration with LG.
GM says this partnership will allow it to have more control over the production of electric vehicles in order to better match it with customer demand.
According to a General Motors executive, the cathode is the energy source of the lithium battery so it has the greatest impact on its performance, safety and price.
This will help the automaker to achieve its electrification goals which calls for an emissions-free lineup by 2035 and to have 1 million electric vehicles on the road by 2025. To do so, GM committed $35 billion on electric and autonomous vehicle development before 2025 and it is supposed to introduce 30 new electric models globally during that same timeframe.