GM signed a non-binding agreement with Pocso Chemical from South Korea to produce essential battery parts for electric vehicles in a North American facility in 2024. It expects to sign a binding agreement soon.

The announcement comes as automakers are changing their strategies to use more onshore facilities to minimize the impact of supply chain disruptions in future and reduce costs. The Biden administration also has prompted companies to bring more employment back to the US amid the global semiconductor chip shortage; which are mainly supplied from Asia, causing rampant closure of factories.

The production will be at the former Detroit-Hamtramck facility, which was already slated to be renovated to fully produce an array of all-electric trucks and SUVs by GM with a $2.2 billion investment. Once production begins in 2024, the facility will produce cathode active material (CAM), which is a crucial component of the batteries used in GM’s electric vehicles. CAM accounts for about 40% of the cost of the materials used for electric vehicle batteries by GM.

Source: https://www.cnbc.com/amp/2021/12/01/gm-to-form-new-joint-venture-to-produce-costly-raw-materials-for-evs.html