Ultium Cells, a joint venture between LG Energy Solution and General Motors, will secure synthetic graphite from North America, reducing its reliance on Chinese supplies, its Norwegian partner Vianode announced Wednesday.
Vianode, a battery materials-maker, stated that it has signed a deal with GM to supply graphite produced at its planned plant in North America from 2027 to 2033. The strategic move aims to make GM’s electric vehicles eligible for tax credits under the US Inflation Reduction Act.
The exact location of the plant has not been disclosed, but Vianode indicated it will be situated in the US or Canada, near Ultium Cells' factories. Ultium Cells currently operates plants in Ohio and Tennessee, with a third facility under construction in Michigan.
The company described the deal as being worth several billion dollars.
“This agreement with Vianode for the development of artificial graphite is another great example of GM’s strategic effort to build a sustainable battery supply chain in North America,” said Jeff Morrison, senior vice president of global purchasing and supply chain at GM.
The new deal is expected to ease concerns for GM and its battery partner LG Energy Solution about potential reductions in tax credits due to reliance on China-made materials. Starting in 2027, Inflation Reduction Act benefits will be unavailable for EV batteries containing Chinese graphite.
By Lim Jae-seong (forestjs@heraldcorp.com)
