Vehicle OEM General Motors and POSCO Chemical will partner to build a lithium-ion battery materials processing factory in North America to supply GM’s Ultium electric vehicle platform.
GM and POSCO Chemical signed a non-binding term sheet to create the joint venture and expect to execute definitive agreements soon.
The joint venture will process cathode active material (CAM) when the facility opens in 2024 at an undisclosed location.
The new facility will supply the Ultium Cells facilities GM and LG Energy Solution are building in Lordstown, Ohio and Spring Hill, Tennessee.
Two more US-based Ultium cell plants are planned by mid-decade as GM drives mass adoption of EVs.
The joint venture is part of GM’s strategy to “rapidly scale US 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.
GM aims to create a North America-focused supply chain for EVs covering the entire ecosystem from raw materials to battery cell manufacturing and recycling.
For global steel maker POSCO Chemical, the partnership is an opportunity to innovate battery materials.