General Motors (NYSE:GM)
To increase North American CAM manufacturing capacity and integrate precursor material production, General Motors (NYSE:GM) and POSCO Future M have launched the second phase of their Ultium CAM joint venture.
Extending the Ultium CAM joint venture will need a new investment of more than $1 billion.
A major battery material, CAM accounts for around 40% of the total cost of a battery cell, and its precursor, pCAM, is a carefully crafted blend of the processed raw ingredients required to manufacture CAM.
Asia is now the world’s leading hub for CAM and pCAM processing.
With the help of four U.S. battery cell joint venture facilities with a combined capacity of 160GWh, the American carmaker wants to install 1M units of annual EV capacity in North America by 2025 and to grow from there in subsequent years.
Between 2025 and 2030, the Ultium CAM partnership will make it possible to manufacture over 360,000 Chevrolet, Cadillac, GMC, Buick, and BrightDrop vehicles per year in North America.
Doug Parks, GM stock executive vice president of global product development, purchasing, and supply chain, said, “Increasing CAM production capacity and adding pCAM to our joint venture is another important step toward building a more secure and sustainable North American-focused supply chain to meet GM’s fast-growing EV production needs.” First, we set up domestic manufacturing of battery cells. We started at the beginning of the battery supply chain and have been working our way back to the raw material recovery stage. We are increasing our vertical integration, which is leading to increased investment and the creation of new employment throughout North America.
The Ultium CAM JV was established in July 2022, and POSCO Future M is the primary shareholder.
The location has yet to be revealed.
According to Reuters, Canada will invest about C$150M ($112M) in a General Motors-POSCO Chemical GM.N005490. The Canadian industry ministry announced the KS battery materials factory earlier this week. The factory is expected to create about 200 jobs in Canada.
After-hours trading saw a 1.6% increase in GM stock.
Featured Image: Freepik
