General Motors and Livent have signed a long-term lithium hydroxide supply agreement, Kallanish reports.

The battery-grade lithium hydroxide, made primarily from lithium extracted at South American brine operations, will be used to produce GM’s electric vehicles. The companies say that 100% of Livent’s downstream lithium hydroxide processing for GM will transition to North America over the course of the six-year agreement that begins in 2025.

In a separate deal, GM has signed a supply agreement with cathode maker LG Chem to acquire cathode active materials for its Ultium Cells LLC joint venture from late 2022 to 2030. It calls for 950,000 tonnes of CAM going to the GM JV over the eight years. That is enough for 5 million EVs. The CAM will be used at battery plants in Ohio, Tennessee and Michigan. The companies will also explore North American CAM production.

The lithium hydroxide agreement is expected to help secure supply for Michigan-based GM while assisting Pennsylvania-based Livent in expanding its North American capabilities. The companies’ joint statement did not address the volume of lithium being acquired from Livent by GM.

GM says it has contractually secured all battery raw material to support its goal of 1m units of EV capacity in North America by the end of 2025. The lithium hydroxide from Livent will be used in GM’s Ultium battery cathodes, which will power electric vehicles such as the recently revealed Chevrolet Blazer EV, Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.

“We are building a strong, sustainable, scalable and secure supply chain to help meet our fast-growing EV production needs,” says Jeff Morrison, GM vice president, Global Purchasing and Supply Chain. “We will further localize the lithium supply chain in North America over the course of the agreement.”