GMs Going Big on HALF a Battery Let's recap GMs announcement:
1. $19 Billion dollar deal with LG Chem.
2. LG to supply 500,0000 tonnes of Cathode material
3. Ten year deal from 2025-2035
4. LG Chem will supply from local sources to meet IRA requirements.
Analysis:
This is for cathode ONLY. GM will have to still have a contract or source for ANODE.
Clearly they want to have the supply be IRA approved which mean NO supply or limited supply from FEOC countries, specifically China, to meet the IRA
IRA approved mineral percentage are:
60% for 2025
70% for 2026
80% for 2027 and beyond
Since 50 percent of the battery is anode, starting next year, even if the entire cathode is IRA approved, EV manufacturers, battery manufacturers MUST have a certain percentage of IRA approved graphite.
From LGs perspective, they are/will be tapped out, that's it, they are off the market, they have committed their North American manufacturing to GM.
So now, Ford, Tesla, Hyundai, Toyota,Stellantis, Volkswagen, etc... will still need to find their supplier...
Their common problem- they ALL need IRA approved graphite.
ALL OF THEM
AND Northern is the ONLY current supplier of graphite.
So, either we have a deal with GM that this management team has keep under their hat, or we don't and the company needs to be shouting this from every possible location...
"Congratulations GM and LG for making such a commitment, how do you plan to finish the battery without graphite?"