South Korea’s battery materials producer Posco Future M said Sunday it has received an award from General Motors for its outstanding achievement across the global purchasing and supply chain.
It was one of 14 companies to have received the General Motors’ Overdrive Award, which is given to companies who specialize in automotive components, batteries and software provision. The evaluation criteria for the award include sustainability, innovation, launch excellence and safety.
Posco Future M was recognized for its contributions in securing a stable electric vehicle battery materials supply chain for GM through Ultium Cam -- the two companies’ joint venture for anode production set to be built in Quebec, Canada, by 2024. Anode is a key material for EV that produces electricity through chemical reactions.
Posco is the first battery materials manufacturer that is setting up a joint venture with the US auto giant.
The anode manufacturing plant is expected to have the production capacity of 30,000 tons, enough for 220,000 EV batteries. It will supply 8.4 trillion won worth ($6.5 billion) of anodes to Ultium Cells -- a joint venture between GM and battery maker LG Energy Solution planned for 2025 to 2032.
Separately, Future M will provide 13.8 trillion won worth of the anodes produced in its Gwangyang plant in South Jeolla Province to Ultium Cells through 2025. It also plans to supply 939.3 billion won worth of cathode materials made from artificial graphite from its Pohang plant until 2028.
In addition, Posco Future M and GM are looking to expand production facilities in North America and build a new plant for battery precursor materials, aiming to improve performance and secure stable supply chain of anodes. The two companies plan to forge a partnership to supply additional anode and cathode materials as well.
“2022 was a challenging year, but Posco Future M has set an example for an excellent supplier in the automotive industry who has taken initiative and overcome many obstacles,” said Jeff Morrison, vice president of GM's global purchasing and supply chain, in a statement.