General Motors and POSCO Future M are progressing with their billion-dollar Ultium CAM joint venture, aiming to ramp up EV production capacity in North America by integrating precursor materials production and elevating CAM production.
General Motors and POSCO Future M are intensifying their efforts in the second phase of the Ultium CAM joint venture, a robust venture that is expected to cross the $1 billion mark. This major investment is intended to amplify the production capacity of CAM (Cathode Active Material) in North America, alongside the integration of pCAM (precursor Cathode Active Material) materials production.
Why It Matters
CAM, a vital battery material that accounts for around 40% of a battery cell’s cost, and its precursor, pCAM, are essential to the development of efficient EV batteries. At present, the majority of CAM and pCAM processing is highly concentrated in Asia. Through this investment, General Motors and POSCO Future M aim to shift some of this production to North America, supporting GM’s plans to install 1 million units of annual EV capacity by 2025 in the region.
GM’s ambitious plan is to be backed by four U.S. battery cell joint venture plants, capable of delivering 160GWh of capacity. The projected growth, subsequently, will support the production of about 360,000 Chevrolet, Cadillac, GMC, Buick, and BrightDrop vehicles annually between 2025 and 2030.
Doug Parks, GM’s executive vice president, Global Product Development, Purchasing, and Supply Chain, emphasized the importance of establishing a sustainable North America-focused supply chain to cater to GM’s burgeoning EV production demands. Meanwhile, Kim Joon-Hyung, President of POSCO Future M, highlighted the rapid growth of the EV battery materials market across North America and the significant role of their joint venture in fortifying the secondary battery material industry.
The Ultium CAM joint venture, primarily owned by POSCO Future M, was established in July 2022, with the site selection to be announced subsequently. The recent announcement marks another significant milestone in GM’s series of actions to fortify a more secure EV supply chain. With this proactive investment, both GM and POSCO Future M are poised to play a pivotal role in the green mobility market by enhancing their battery material production capacities in North America.