General Motors today announced that it has signed a non-binding term sheet to create a joint venture with POSCO Chemicals. Together, the two companies plan to open a factory in North America to process materials critical to battery development.
The plant will process Cathode Active Material, a key material that represents 40 percent of the cost of a battery cell. The exact location of the factory has not yet been announced, but GM says it will be located in North America and will open in 2024.
“Our work with POSCO Chemical is a key part of our strategy to rapidly scale U.S. EV production and drive innovation in battery performance, quality and cost,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain. “We are building a sustainable and resilient North America-focused supply chain for EVs covering the entire ecosystem from raw materials to battery cell manufacturing and recycling.”
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The factory will serve the Ultium Cells LLC facilities that are being built in Lordstown, Ohio, and Spring Hill, Tennessee. Two additional Ultium cell plants are planned for the U.S. by mid-decade.
“We are very pleased to participate in the global battery supply chain project with General Motors,” said the CEO of POSCO Chemical, Kyungzoon Min. “Through close partnership, we will innovate battery materials and contribute to accelerate the adoption of EVs based on our world-class product development, mass production capacity, and raw materials competitiveness.”
GM is investing heavily in electrification, as it intends to only sell electric vehicles by 2035. The company says that this plant will need hundreds of workers to operate and will be crucial to the development of its future vehicles, which include a $30,000 electric crossover sold under the Chevrolet brand.
