GM and Livent today announced a multi-year procurement agreement under which Livent will supply GM with battery-grade lithium hydroxide manufactured from lithium obtained at its brine-based sites in South America. Lithium hydroxide is important to GM’s plans to develop more powerful, more sustainable electric vehicles. The batteries that will be powered by Livent’s lithium hydroxide will be used in GM’s new battery cell plant currently under construction in Ohio.
“We are building a strong, sustainable, scalable and secure supply chain to meet our rapidly growing EV manufacturing needs,” said Jeff Morrison, GM Vice President, Global Purchasing and Supply Chain. “Over the course of the agreement, we will further localize the lithium supply chain in North America. In addition, it aligns with our approach to responsible sourcing and supply chain management and demonstrates our commitment to strong supplier relationships.”
GM will get battery-grade lithium hydroxide from Livet for the next 6 years. Over the term of the contract, Livent GM will progressively supply battery-grade lithium hydroxide from its facilities in the United States, with the goal of transferring 100% of Livent’s downstream lithium hydroxide processing for GM to North America.
Both GM and Livent are committed to sustainable supply chains and responsible operations through industry and multi-stakeholder platforms. General Motors is a member of the Responsible Minerals Initiative (RMI), joined the Initiative for Responsible Mining Assurance (IRMA) in 2021 and plans to become carbon neutral in global products and operations by 2040. Livent is actively involved in an IRMA third-party assessment, has an EcoVadis gold rating for sustainability and has announced an overall carbon neutrality target by 2040.
“We are excited to enter into this long-standing relationship with GM, one of the most iconic brands in the auto industry and a leading force in the transition to electrification,” said Paul Graves, president and chief executive officer of Livet. “With a shared commitment to sustainability and responsible business practices, we look forward to building a broad partnership that will support GM’s electric vehicle strategy, its supply chain goals and the future demands of its growing EV fleet for reliable, high-performance lithium products.”
GM will talk about the deal during its earnings call, and Livent will do the same as part of its upcoming earnings call for the second quarter of 2022 on August 2.
Livent is a fully integrated lithium company with a long and proven track record of producing high quality lithium compounds. For almost 8 decades, Livent has been working with its customers to use lithium safely and sustainably to run the world.
Why this is important
It seems like every company is constantly announcing battery supply deals these days, but for those who are following the subject more closely, it might be interesting to see how the puzzle pieces come together and how manufacturers secure battery chemical suppliers.
Optimists see that seemingly impossible goals can be achieved with enough electric cars on the road, while others find it difficult to see how all of these companies will get the lithium, cobalt and other minerals they need to make those batteries. Pessimists see this shuffling and think we may just be rearranging the deck chairs on the Titanic as it sinks.
As these deals shrug off, the demand for more materials could increase production to make climate goals a lot more achievable.
Featured image by GM.
Do you appreciate the originality of CleanTechnica and the coverage of cleantech? Consider becoming one CleanTechnica member, supporter, technician or ambassador — or a patron on Patreon.
