POSCO Chemical and GM ink agreement for the large-scale supply of CAM to support EV growth
POSCO Chemical and General Motors Co. have announced a binding agreement for a large-scale supply (KRW 13,769.6 billion) of Cathode Active Material (CAM) to help GM meet its fast-growing EV production needs.
CAM is a key battery material consisting of components like processed nickel, lithium, and other materials representing about 40% of the cost of a battery cell.
Through the multi-year agreement, which runs from 2023 through 2025, the CAM provided by POSCO Chemical to GM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solutions, at its battery cell plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan. The high-nickel CAM will be produced at POSCO Chemical's Gwayngyang facility in Korea.
This new agreement is in addition to the previously announced CAM processing joint venture between GM and POSCO Chemical, which includes a new $400 million facility in Quebec (Canada). Construction on this new facility, in which the joint venture will operate, has already begun. The site's construction will allow for future expansion opportunities. To ensure a stable operating pattern during its launch phase, the CAM joint venture has secured a long-term agreement with Ultium Cells LLC for 8 years and the supply of 30 thousand metric tons of CAM on annual basis.
These recent announcements have strengthened POSCO Chemical's collaboration with GM and have raised its position in the market as a global battery raw material producer.
GM has contractually secured all battery raw materials to support its goal of 1 million units of EV capacity in North America by the end of 2025. This includes lithium, nickel, cobalt, and full CAM supply.