Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

GM Drops EV Supply-Chain Bomb With Partnership for Battery Components

by
December 2, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter
Text size

GM wants to sell only EVs by 2035.

Jeffrey Sauger for General Motors


General Motors

took another step toward vertically integrating its supply chain for electric vehicles, disclosing a plan to work with


POSCO Chemical

to build a North American factory to manufacture materials for battery cathodes.

RELATED POSTS

Singapore drops pre-departure requirements for travelers, further eases mask rules

Oil faces a ‘serious problem’ by 2024 as production capacity runs out, warns Goldman — here are 3 big oil stocks with yields as high as 4%

It’s a big step for GM, the car business, and even for the U.S. Shares of GM (ticker: GM) gained on the news, rising about 3.7% to a hair under $60 by midday on Wednesday. Shares closed up 0.4% at $58.06.

The

S&P 500
and

Dow Jones Industrial Average
gave up early gains and closed 1.2% and 1.3% lower, respectively. The Omicron variant of Covid-19 continues to generate trading volatility.

GM has big plans for EVs: It wants to sell only electric vehicles by 2035. In the meantime, it an announced plans to spend $35 billion on vehicle development and manufacturing capacity to make that happen. Along with traditional assembly plants, GM plans to build battery factories with partner


LG Chem

(051910. Korea).

That is where the new plant fits in. Right now, most cathode materials—cathodes and anodes are opposite sides of a battery that facilitate the flow of electricity—are manufactured in Asia. Bringing production to the U.S. saves costs and gives GM more control over supply and technological development.

“Our work with POSCO Chemical is a key part of our strategy to rapidly scale U.S. EV production and drive innovation in battery performance, quality and cost,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain, in GM’s news release. “We are building a sustainable and resilient North America-focused supply chain for EVs covering the entire ecosystem from raw materials to battery cell manufacturing and recycling.”

The cathodes EV investors hear about these days include elements such as iron, cobalt, nickel, and lithium. Those are the materials that will be fed into the new facility. Supplies of those elements are one more step back along the EV supply chain.

Cathode materials from the plant will flow into GM’s new battery factories, which will supply the automotive assembly operations. The supply-chain work, plus research and development by GM, is intended to drive costs down. That could help GM to produce a Chevy EV crossover—midway in size between a sedan and an SUV, starting at about $30,000 by mid-decade, as management has said it plans to do.

Cathodes represent “roughly one third to half the cost of the battery and it represents a very significant function in terms of driving capacity,” said CFO Paul Jacobson at an investment conference Wednesday. “This is the first of many announcements we’re talking about over the coming months and years as [GM’s] taking the long-term view along this journey to EV transformation.”

The plant will be operational around 2024. GM didn’t disclose a price tag, but the money for this plant is part of the $35 billion planned spending. GM says the plant will create hundred of jobs—positions that would have ended up overseas without local investment. The company hasn’t disclosed a location for the factory just yet.

Write to Al Root at allen.root@dowjones.com

ShareTweetPin

Related Posts

Singapore drops pre-departure requirements for travelers, further eases mask rules

by
February 9, 2023
0

People gather outside the ArtScience Museum at Marina Bay Sands in Singapore on January 17, 2023. (Photo by Roslan RAHMAN...

Oil faces a ‘serious problem’ by 2024 as production capacity runs out, warns Goldman — here are 3 big oil stocks with yields as high as 4%

by
February 9, 2023
0

S&P 500 4,117.86 -46.14(-1.11%) Dow 30 33,949.01 -207.68(-0.61%) Nasdaq 11,910.52 -203.27(-1.68%) Russell 2000 1,942.60 -30.01(-1.52%) Crude Oil 78.47 0.00(0.00%) Gold...

‘Lithium Batteries Are the New Oil,’ According to Elon Musk — Here Are 2 Stocks to Take Advantage

by
February 9, 2023
0

S&P Futures 4,137.50 +7.00(+0.17%) Dow Futures 34,065.00 +70.00(+0.21%) Nasdaq Futures 12,580.00 +34.75(+0.28%) Russell 2000 Futures 1,953.00 +3.10(+0.16%) Crude Oil 78.57...

Thursday: Unemployment Claims

by
February 9, 2023
0

by Calculated Risk on 2/08/2023 08:12:00 PM Note: Mortgage rates are from MortgageNewsDaily.com and are for top tier scenarios. Thursday:...

Here are Credit Suisse’s favorite stocks for February

by
February 9, 2023
0

Credit Suisse refreshed its "top of the crop" stock picks for February, as the market tries to build on its...

Next Post

Stocks making the biggest moves premarket: Snowflake, Boeing, Apple and more

House strikes deal to avoid a government shutdown one day before deadline

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net