Planned manufacturing plant expected to be operational by 2024
General Motors is building its supply chain from within. The vehicle manufacturer announced it is partnering with POSCO Chemical to build a North American battery cathode production plant.
The move will allow GM to manufacture its own battery components which are needed to power electric vehicles (EVs).
“Our work with POSCO Chemical is a key part of our strategy to rapidly scale U.S. 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. “We are building a sustainable and resilient North America-focused supply chain for EVs covering the entire ecosystem from raw materials to battery cell manufacturing and recycling.”
The facility will process Cathode Active Material, a key component of EV batteries that make up about 40 percent of their total cost, according to GM.
GM says the new facility is expected to be open by 2024 and will create hundreds of new jobs.
The company has previously said it plans to invest $35 billion in electric and autonomous vehicles between the years 2020 and 2025, and that it expects to launch more than 30 electric vehicles around the globe by 2025.
“We are very pleased to participate in the global battery supply chain project with General Motors,” said Kyungzoon Min, the CEO of POSCO Chemical. “Through close partnership, we will innovate battery materials and contribute to accelerate the adoption of EVs based on our world-class product development, mass production capacity, and raw materials competitiveness.”
Stock shares of GM rose around 3.7% to just under $60, following news of the partnership, reports Barron’s.
The company said it wants to double its annual revenues by the end of the decade, as part of its EV goals, and wants to grow EV revenue from an expected $10 billion in 2023 to around $90 billion a year by 2030.