[Asia Economy Reporter Kwon Jae-hee] American automaker General Motors (GM) has partnered with South Korea's POSCO Chemical to produce cathode materials, a key component of electric vehicle batteries.
Through the establishment of this joint venture, GM will be able to secure key materials for electric vehicle batteries stably, while POSCO Chemical will establish its first overseas cathode material factory.
According to CNBC on the 1st (local time), GM signed a contract containing these details with POSCO Chemical and is expected to finalize the agreement soon.
The joint venture plans to open a factory in North America in 2024, where cathode materials, which account for 40% of the cost of electric vehicle battery cells, will be produced.
GM did not disclose specific investment plans or scale. It added that the location of the factory will be announced early next year.
Recently, automakers have been striving to integrate electric vehicle battery supply chains to reduce costs and lower the risk of supply chain disruptions. The establishment of the joint venture between GM and POSCO Chemical is interpreted as part of these efforts.
Doug Parks, GM's Vice President of Global Product Development and Purchasing Supply Chain, stated, "This will be a significant investment for both GM and POSCO Chemical."
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