GM, LG, and Livent Enter Long-Term Supply of Cathode Active Material and Lithium Hydroxide

Discussion in 'In the News' started by xcel, Aug 8, 2022.

  1. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    [​IMG] LG Chem’s Cathode Active Material and Livent’s battery-grade lithium hydroxide can support production of 5 million EVs over the next 5 to 8 years.

    Wayne Gerdes – CleanMPG – Aug. 6, 2022

    [​IMG]

    GM and LG Chem

    LG Chem and GM announced a binding agreement for the supply of Cathode Active Material (CAM) from LG Chem to GM. The supply agreement will 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 long-term supply arrangement, LG Chem plans to supply more than 950,000 tons of CAM to GM beginning the second half of 2022 through 2030, enough for approximately 5 million units of EV production. The CAM secured by GM will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solution, at its battery cell plants in Warren, Ohio; Spring Hill, Tennessee; and Lansing, Michigan.

    GM and LG Chem will also explore the localization of a CAM production facility in North America by the end of 2025.

    GM and Livent

    GM and Livent announced significant multi-year sourcing agreements in which Livent will supply GM with battery-grade lithium hydroxide made primarily from lithium extracted at Livent’s brine-based operations in South America. Lithium hydroxide is crucial to GM’s plans to make higher performance, higher mileage EVs. The lithium hydroxide from Livent will be used in GM’s Ultium battery cathodes, which will power electric vehicles such as the recently revealed Chevrolet Blazer EV, Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.

    Livent will provide battery-grade lithium hydroxide to GM over a six-year period beginning in 2025. Over the course of the agreement, Livent will increasingly supply battery-grade lithium hydroxide to GM from its manufacturing facilities in the U.S., with the goal of transitioning 100% of Livent’s downstream lithium hydroxide processing for GM to North America. The agreement is expected to help secure supply for GM while assisting Livent in expanding its North American capabilities.

    Both GM and Livent share a commitment to responsible operations and sustainable supply chains through industry and multi-stakeholder platforms. GM is a member of the Responsible Minerals Initiative (RMI), joined the Initiative for Responsible Mining Assurance (IRMA) in 2021 and plans to become carbon neutral in global products and operations by 2040. Livent is actively engaged in an IRMA third-party assessment, has a gold rating from EcoVadis for sustainability and has announced a goal of overall carbon neutrality by 2040.
     
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  2. litesong

    litesong litesong

    That 1) 4 US battery cell plants, 2) localized supply chain, 3) direct sourcing, & 4) no mention of communist china (always small letters), can it be that communist china(always small letters) will NOT have SOME outlets in the US?
     
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  3. xcel

    xcel PZEV, there's nothing like it :) Staff Member

    Hi Litesong:

    GM, Ford, and every other OEM have finally realized the huge risk they exposed themselves to by relying on China or any far eastern supplier for their lowest cost, just in time (JIT) inventory. Unfortunately all are still stuck as the lack of production leading to a lack of inventory for all-OEMs reveal. It has been almost 2 years of supply constraints and none have figured a way out yet.

    Tesla appears to have done the best job of sourcing parts and raw materials as their sales are flat but everybody including the hard charging Koreans are seeing sales volumes falloff due to a lack of supply. All are making up for it with only their highest profitable trims and products being shipped and sold but that will eventually end when the consumer says enough is enough.

    Wayne
     
  4. EdwinTheMagnificent

    EdwinTheMagnificent Legend In His Mind

    Enough is enough. Did they hear me ? Do I need to speak louder?
     
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  5. MaxxMPG

    MaxxMPG Hasta Lavista AAA-Vee Von't Be Bach

    There is a big - shall we say - "correction" coming to the auto market. Delinquencies on auto loans are heading up and each month there is momentum building. The lenders who serve the sub-prime loans are setting aside very large sums to account for bad debt, and they said in a recent release (paraphrasing here) that they weren't expecting so many loans to go bad at the same time. Average used car loan in that end of the market is $505 a month. As the used car market starts to swell with repossessed metal, it will put pressure on the new car market. Right now, a new car is the better deal if you can get one at MSRP. Used cars less than a few years old are selling for about the same as new. I don't think that will be the case six months to a year from now.

    It will be nice to see real "Incentives" return to the "Shopping Tools" pages of automaker websites. Just as they catch up on production and get the chips necessary to go over to the vast fields of inventory to plug chips into those lot-rot mouse-infested rusted-rotor trucks sitting out in the weather as they wait for the missing silicon, there will be precious few buyers ready to take on the $900 a month obligation. A half year of that will bring the market back down where it belongs.
     
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