GM Scales Up EV Strategy Via POSCO Chemical JV For Battery Materials

General Motors Co GM plans to form a joint venture with POSCO Chemical to construct a factory in North America to process critical battery materials for its Ultium electric vehicle platform. The financial terms of the JV were not disclosed.
The parties have signed a non-binding term sheet to create the JV and expect to execute definitive agreements soon.
The JV will process Cathode Active Material (CAM), a key battery material that represents about 40% of the cost of a battery cell.
GM and POSCO Chemical expect the facility to create hundreds of jobs when it opens in 2024. The location of the facility will be announced later. Two more U.S.-based Ultium cell plants are planned by mid-decade.
"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," said executive vice president Doug Parks.
Price Action: GM shares are trading higher by 2.26% at $59.18 on the last check Wednesday.