Photo: Skyline/Vale.com
Ever since the pace of the march toward an all-electric world in terms of transportation began to generate some steam, companies not named have been back on their heels trying to catch up with pioneering company Tesla.
Many automakers will admit that they were slow to commit to the movement but once they did acknowledge that it was real, they have poured billions of dollars into joint ventures with battery manufacturers and billions more into transforming their existing factories and building others.
In the wake of these changes, procurement departments across the automaking spectrum have been working overtime to find reliable companies to supply materials critical to making EV batteries. More specifically, companies that are not owned or run by the Chinese.
For its part, GM has reached an agreement with Brazilian-based sustainable mining giant Vale to supply GM with battery-grade nickel sulfate; a critical metal needed for the production of battery cathodes.
The deal adds to the more than 20 other supply agreements GM has entered into with key material suppliers as it aims to build its electric vehicle manufacturing capacity to 1 million by 2025.
Vale will supply GM with enough refined nickel for up to 350,000 EVs per year beginning in the latter half of 2026. The nickel will come from a proposed Vale Canada facility in Becancour, Quebec which will maintain eligibility for consumers to take advantage of tax credits from the U.S. Inflation Reduction Act.
The average industry cost for nickel-based cathodes has risen as high as $140 per kWh over the past year according to Reuters,
As a result, GM is looking at lithium iron phosphate (LFP) cells to reduce battery costs and is also testing lithium metal and pure silicon anodes to increase battery storage capacity. The company expects to reduce the cost of its Ultium battery cells to less than $70 per kilowatt-hour by the end of this decade at the latest.
In the wake of these changes, procurement departments across the automaking spectrum have been working overtime to find reliable companies to supply materials critical to making EV batteries. More specifically, companies that are not owned or run by the Chinese.
For its part, GM has reached an agreement with Brazilian-based sustainable mining giant Vale to supply GM with battery-grade nickel sulfate; a critical metal needed for the production of battery cathodes.
The deal adds to the more than 20 other supply agreements GM has entered into with key material suppliers as it aims to build its electric vehicle manufacturing capacity to 1 million by 2025.
Vale will supply GM with enough refined nickel for up to 350,000 EVs per year beginning in the latter half of 2026. The nickel will come from a proposed Vale Canada facility in Becancour, Quebec which will maintain eligibility for consumers to take advantage of tax credits from the U.S. Inflation Reduction Act.
The average industry cost for nickel-based cathodes has risen as high as $140 per kWh over the past year according to Reuters,
As a result, GM is looking at lithium iron phosphate (LFP) cells to reduce battery costs and is also testing lithium metal and pure silicon anodes to increase battery storage capacity. The company expects to reduce the cost of its Ultium battery cells to less than $70 per kilowatt-hour by the end of this decade at the latest.
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