GM lines up battery supply deals to power EVs
General Motors is lining up deals to shore up its long-term supply of battery materials, even as short-term supply issues continue to undermine current production.
Driving the news: The automaker on Tuesday announced two deals to secure access to battery materials that are crucial to the company's future EVs, including the recently revealed Chevrolet Blazer EV and the Cadillac Lyriq:
- A six-year deal with Livent beginning in 2025 to supply lithium hydroxide from an operation in South America.
- A contract with LG through 2030 to provide cathode active material — which includes nickel, lithium and other raw materials making up about 40% of the battery cell costs.
Details: The LG deal will involve the construction of a new plant in North America by the end of 2025, fueled by a $2.5 billion Energy Department loan announced Monday as part of the Advanced Technology Vehicles Manufacturing program
The other side: Ford, GM's arch-rival, said last week it's secured "100% of the annual battery cell capacity needed" to fulfill its battery demand through 2026.
- Ford announced plans to buy battery supplies from Contemporary Amperex Technology Co., LG, SK On and LGES.