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POSCO Future M and GM to Expand EV Battery Supply Chain in North America with New Integrated CAM and Precursor Processing Complex
2023.06.02
The two companies announced today that they will increase Cathode Active Material (CAM) production capacity of Ultium CAM, a joint venture located in North America, and integrate additional Precursor CAM (pCAM) capacity. The project is planned to be completed by 2026.
In addition, the joint venture and Ultium Cells signed a binding agreement for large-scale supply of CAM to help GM meet its fast-growing EV production needs.
This investment is aimed at increasing the production capacity of CAM, and strengthening supply chains by localizing pCAM processing through investments in North America. pCAM is a specifically engineered combination of processed raw materials necessary to produce CAM, a key battery material representing about 40% of the cost of a battery cell. Currently, CAM and pCAM processing is highly concentrated in Asia.
POSCO Future M established Ultium Cam, a joint venture with global automaker GM, in July 2022, and together are building a CAM plant with the aim of completing it by 2024.
POSCO Future M is expanding its global mass production base in South Korea to major electric vehicle markets such as North America, China, and Europe. This investment will secure large-scale CAM production capacity in North America.
GM is executing plans to install 1 million units of annual EV capacity in North America in 2025, supported by four U.S. battery cell joint venture plants with 160GWh. of capacity and grow from there in subsequent years. The Ultium CAM joint venture will support production of approximately 360,000 Chevrolet, Cadillac, GMC, Buick and BrightDrop vehicles annually in the 2025-2030 timeframe in North America.
“Increasing CAM production capacity and adding pCAM to our joint venture is another significant step in building a more secure and sustainable North America-focused supply chain to support GM’s fast-growing EV production needs,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain. “We started by establishing battery cell production in the U.S. From there, we have been working through the entire battery supply chain, all the way to raw material recovery. We’re building higher levels of vertical integration, driving expanded investment and helping create jobs across North America.”
"We are experiencing rapid growth of EV battery materials market across North America. I believe our JV will fortify its position in the battery material industry with this proactive decision to increase CAM production, and bring pCAM production to North America." Said Kim Joon-Hyung, President, POSCO Future M. "POSCO Future M's advanced technology and experience is supported by our expanding partnership with GM. We are aiming to play a key role in eco-friendly mobility market with our products."
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(Photo description) The factory construction site of Ultium CAM