Posco Chemical Company announced it had signed a binding agreement to supply cathode active materials (CAM) to General Motors in a deal worth KRW 13.8 billion (US$11 million) over the next three years.
The American automaker is ramping up its move to electric vehicles with plans to reach a production capacity of one million EVs per year in North America by the end of 2025.
CAMs include process nickel, cobalt and lithium and typically account for about 40% of the value of EV batteries.
Posco said the new deal to supply CAM to the GM Ultium Cells joint venture with LG Energy Solutions will run until the end of 2025, to be supplied from its Gwayngyang processing facility in South Korea.
This is in addition to the agreement between Ultium Cells and the joint venture between GM and Posco Chemical called Ultium CAM, which has a CAM processing plant under construction in the province of Quebec, Canada. This deal will start in 2025 and will supply 30,000 tons of CAM annually to Ultium Cells for eight years.
Posco said the deal strengthened its supply agreement with GM and battery supplier LG Energy Solution.