LG Chem Ltd and Livent Corp have signed multi-year agreements with General Motors Co for battery raw materials.

General Motors

By end-2025, GM hopes to produce 1 million electric vehicles in North America by securing supplies of lithium, nickel, cobalt and active materials.

U.S. government pressure and a booming market for electric vehicles have led automakers to explore sourcing critical inputs for batteries, with an eye toward localization.

About 5 million electric vehicles will be powered by LG Chem's cathodes between 2022 and 2030, GM said.

Battery cells cost about 40 percent more because of cathode material made from nickel, lithium, and other materials.

Both companies haven't specified the quantity of lithium hydroxide the automaker will receive from Livent over the next six years.

Ford Motor Co recently signed a deal to import batteries made of lithium iron from China's CATL.

By 2026, Ford plans to produce 2 million electric vehicles a year under its various agreements.

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