Summary
- General Motors signed a multi-year agreement with Vianode for synthetic graphite anode material for electric vehicle batteries
- Deal runs from 2027 to 2033 and the material will be used by Ultium Cells LLC, a joint venture between GM and LG Energy Solution
- China controls 95% of global graphite supply, leading to Western automakers looking for new sources of the material
- Vianode claims its new plant producing synthetic graphite will be "IRA compliant" for federal EV tax credit qualification
- Specific site for the plant in U.S. or Canada not yet finalized, expected to produce 80,000 tons of synthetic graphite by 2030 with a smaller carbon footprint than conventional methods. GM also made changes to its battery plans last month, selling its stake in a Michigan plant and extending partnership with LG to include prismatic cells.
Article
General Motors has recently signed a multi-year agreement with Norway’s Vianode for the supply of synthetic graphite anode material for electric vehicle batteries. The agreement, which is set to run from 2027 to 2033, will see Vianode producing synthetic graphite at a new North American plant, with the material being used in battery cells manufactured by the Ultium Cells LLC joint venture between GM and battery supplier LG Energy Solution. This move comes as Western automakers and governments seek alternative sources of graphite, as China currently controls 95% of the global supply, leading to concerns about sourcing materials from a country deemed a Foreign Entity of Concern by the federal government.
Vianode claims that its new plant will be “IRA compliant,” meaning that the battery materials produced there should not impact the qualification for the federal EV tax credit, as per current rules defined by the Inflation Reduction Act. The plant, expected to be located in either the U.S. or Canada, will initially produce 80,000 tons of synthetic graphite by 2030, enough to supply 1.5 million EVs. Furthermore, Vianode states that its manufacturing process comes with a 90% smaller carbon footprint compared to conventional methods. This aligns with GM’s focus on sustainability, as the automaker looks to meet the growing demand for electric vehicles while minimizing environmental impact.
In addition to the agreement with Vianode, GM made other significant changes to its battery plans, selling its stake in the Ultium Cells LLC Michigan plant to LG while extending a technical partnership to include prismatic cells. Although GM has standardized its EV hardware around pouch cells, CEO Mary Barra has emphasized the company’s flexibility on battery-cell format, indicating willingness to adapt to technological advancements in the industry. These strategic moves demonstrate GM’s commitment to staying competitive in the rapidly evolving electric vehicle market and ensuring a stable supply chain for critical battery materials.
The importance of securing a local supply of graphite for EV batteries is underscored by China’s dominance in the global market and concerns about dependency on foreign sources, particularly in light of geopolitical tensions. By partnering with Vianode for synthetic graphite production in North America, GM seeks to reduce reliance on imports and ensure a stable and sustainable supply chain for its electric vehicles. The company’s decision to prioritize local sourcing aligns with broader efforts to strengthen domestic manufacturing capabilities and promote resilience in the face of global supply chain disruptions.
As the shift towards electrification accelerates, automakers like GM are investing in battery technology and materials to meet the growing demand for electric vehicles. By partnering with Vianode for synthetic graphite anode material, GM aims to secure a local supply chain for critical battery components and reduce its environmental footprint through sustainable manufacturing practices. This strategic alliance reflects GM’s commitment to innovation, sustainability, and resilience in the face of evolving market dynamics, positioning the company for continued success in the electric vehicle sector and advancing its goal of a carbon-neutral future.
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