By Sam Boughedda
Investing.com – The automotive giant General Motors (NYSE 🙂 is planning to set up a joint venture POSCO Chemical (NYSE 🙂 to build a facility in North America to process critical battery materials for GM's Ultium electric vehicle platform.
GM has signed a non-binding term sheet with the South Korean company POSCO to set up the joint venture. They expect to make final agreements "soon".
GM stock hit a high of $ 60.59 on the news. They are up 0.7% in the afternoon.
The factory will process Cathode Active Material (CAM), a key battery material that makes up about 40% of the cost of a battery cell – a move by GM to take control of its supply chain and minimize disruption after recent shortage issues on semiconductor chips.
The facility will open in 2024, with GM believing it will help scale battery cell production to become a leading electric vehicle in the U.S. In addition, the company will launch more than 30 electric vehicles worldwide by 2025, including the GMC Hummer EV, Cadillac LYRIQ, and Chevrolet Silverado EV.
"Our collaboration with POSCO Chemical is an important part of our strategy to rapidly scale US electric vehicle production and drive innovation in battery performance, quality and cost," said Doug Parks, GM executive vice president for global product development, purchasing and supply chain .
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