GM is continuing its efforts to convert to an electric vehicle (EV) lineup, securing supply lines to help it hit 1 million EVs by 2025.
Like many automakers, GM has been heavily investing in EV development. At the beginning of the year, the company announced plans to invest $7 billion in four Michigan plants in an effort to speed up EV production. Similarly, CEO Mary Barra said the company could eventually top Tesla in the EV market.
GM has taken a significant step toward that goal, signing long-term agreements with both LG Chem Ltd and Livent Corp for the materials necessary to create EV batteries.
Livent will supply GM with battery-grade lithium hydroxide over a six-year period, starting in 2025.
“We are building a strong, sustainable, scalable and secure supply chain to help meet our fast-growing EV production needs,” said Jeff Morrison, GM vice president, Global Purchasing and Supply Chain. “We will further localize the lithium supply chain in North America over the course of the agreement. In addition, it is aligned with our approach to responsible sourcing and supply chain management and demonstrates our commitment to strong supplier relationships.”
“Importantly, GM now has contractual commitments secured with strategic partners for all battery raw material to support our goal of 1 million units of EV capacity by the end of 2025,” added Morrison
LG Chem, on the other hand, will supply GM with more than 950,000 tons of Cathode Active Material (CAM), starting in the second half of 2022 and continuing through 2030.
GM is working with both companies to help localize production in North America to the extent possible.