General Motors is partnering with South Korea’s Posco Chemical to build a battery material plant in North America as it moves to take further steps under its umbrella in the electric vehicle supply chain.
DETROIT – General Motors is developing a joint venture with South Korea’s Posco Chemical to build a North American battery material plant as it moves further under its umbrella in the electric vehicle supply chain.
Detroit carmaker said Wednesday that details of the project are being worked out, including the amount of investment and the location of the plant. GM said the factory would supply materials for making cathodes, which are the center of energy for the battery, costing 40 percent.
Doug Parks, head of GM’s global product development and supply chain, said the plant would employ hundreds of people and begin manufacturing in 2024.
The plant will supply four battery cell factories in North America that GM plans to build. Two of these locations have been announced, Spring Hill, Tennessee, and Lordstown, Ohio.
“Large battery production is central to our strategy for mass adoption of EVs,” Parks told reporters Wednesday. “I think it helps strengthen the supply chain and add security to it.”
Automakers are racing to supply suppliers of rare battery materials and components in anticipation of a major shift from internal combustion vehicles to electric vehicles.
Auto industry executives polled by KPMG International say they expect more than half of all new US car sales to be battery-powered by 2030.
GM plans to build 30 electric vehicles globally by 2025 and says it will spend 35 35 billion on electric and autonomous vehicles between 2020 and 2025.
Currently, GM is not selling any electric vehicles. GMC is developing a pre-production version of the Hummer EV that will go on sale soon. But he had to stop selling Chevrolet Bolt mini SUVs and hatchbacks because he had to be recalled because of a battery fire.
Parks said the cathode material plant should help GM reduce battery costs. He said the company plans to bring a smaller Chevrolet crossover SUV for about ً 30,000 and another SUV for even less.
Parks said the new plant will produce materials for GM’s new ultimate battery chemistry using nickel, cobalt, manganese and aluminum. A cathode is a negative terminal where the current discharges the battery,