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GM wants to sell only electric vehicles by 2035.
Jeffrey Sauger for General Motors
General Motors
has taken another step towards the vertical integration of its supply chain for electric vehicles, revealing a plan to collaborate with
POSCO Chemical
to build a North American manufacturing plant for battery cathode materials.
That’s a big step for GM, the auto industry, and even for the news-winning US shares of GM (ticker: GM), rising about 3.7% to a hair’s breadth below $ 60 on Wednesday at noon.
the
S&P 500
and
Dow Jones Industrial Average
rose 1.7% and 1.3% respectively, as markets rebounded after Tuesday’s liquidation linked to the Omicron variant of Covid-19.
General Motors (ticker: GM) has big plans for electric vehicles: it wants to sell only electric vehicles by 2035. GM plans to build battery factories with
LG Chem
(051910. Korea), but batteries also need materials.
This is where the new factory fits. Today, most cathode materials (cathodes and anodes are the opposite sides of a battery that facilitate the flow of electricity) are made in Asia. Bringing production to the United States cuts costs and gives GM more control over sourcing and technology development.
“Our work with POSCO Chemical is a key part of our strategy to rapidly increase production of electric vehicles in the United States and drive innovation in battery performance, quality and cost,” said Doug Parks , GM Executive Vice President, Global Product Development, Purchasing and Supply Chain, in GM Press Release. “We are building a sustainable and resilient North American-centric supply chain for electric vehicles spanning the entire ecosystem, from raw materials to manufacturing and recycling battery cells. “
Cathodes EV investors hear about these days include things like iron, cobalt, nickel, and lithium. These are the materials that will be introduced into the new facility. Sourcing these items is one more step in the EV supply chain.
Cathode materials from the plant will be transported to GM’s new battery plants, which will supply automotive assembly operations. The work of the supply chain, along with GM’s research and development, is aimed at reducing costs. It could help GM produce a Chevrolet EV crossover. halfway between a sedan and an SUV, starting at around $ 30,000 by the middle of the decade, as management has announced.
The plant will be operational around 2024. GM expects it to create hundreds of jobs, jobs that would have ended up overseas without local investment. The company did not disclose the location of the plant.
Write to Al Root at [email protected]
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