GM has announced a new joint venture with POSCO Chemical, a global advanced materials company focused on advanced battery technologies for mobility applications. The new joint venture will result in a new North American factory that will process materials for the GM’s Ultium-powered all-electric vehicles, processing Cathode Active Material, or CAM, a critical battery component that’s said to make up roughly 40 percent of the cost of a battery cell.
The new North American facility will open in the 2024 calendar year and create hundreds of new jobs. The location of the new factory will be announced at a later date.
This latest joint venture will help to scale battery production for GM’s range of all-electric vehicles, supporting the automaker’s new Ultium Cells LLC facilities currently under construction in Lordstown, Ohio, and Spring Hill, Tennessee. The automaker plans to build two additional Ultium cell facilities by mid-decade.
GM executive vice president, Global Product Development, Doug Parks, commented on the new joint venture, saying that it will help to drive General Motors towards battery cell innovation and rapidly bring EV production to scale.
“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,” Parks said.
GM previously announced that it would launch 30 new EV models globally by the 2025 calendar year, two-thirds of which will be available in North America. By the end of 2025, it’s expected that roughly 40 percent of GM’s U.S. portfolio will consist of all-electric vehicles, including small to medium-sized crossovers, pickup trucks, and SUVs.
GM says it’s committed to achieving the number-one electric vehicle market share in North America, a position currently held by Tesla. GM CEO Mary Barra previously stated that General Motors could catch up to Tesla in terms of U.S. electric vehicle sales by the 2025 calendar year.
GM has earmarked roughly $35 billion for new electric and autonomous vehicle investments through mid-decade. Some of the upcoming GM EV products include the new Cadillac Lyriq, GMC Hummer EV, and Chevy Silverado EV.