Livent’s battery-grade lithium hydroxide, made primarily from lithium extracted at its brine-based operations in South America, is to be utilised in the production of General Motors’ electric vehicles.
General Motors and Livent outlined their expectations from this partnership, including:
- 100% of Livent’s downstream lithium hydroxide processing for General Motors to transition to North America over the course of the agreement;
- Both companies prioritise commitment to responsible operations and sustainable supply chains; and
- GM has contractually secured all battery raw materials to support its goal of one million units of electric vehicle (EV) capacity in North America by the end of 2025.
Lithium hydroxide: Making one million units of EVs possible
On 26 July 2022 Livent and General Motors Co. (GM) announced a significant multi-year sourcing agreement where in which Livent will supply GM with battery-grade lithium hydroxide constructed primarily from lithium extracted at Livent’s brine-based operations in South America. Lithium hydroxide is crucial to GM’s plans to make higher performance, higher mileage EVs. The lithium hydroxide from Livent will be used in GM’s Ultium battery cathodes, which will power EVs, such as the recently revealed Chevrolet Blazer EV, Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ.
Livent will provide battery-grade lithium hydroxide to GM over a six-year period beginning in 2025. Over the course of the agreement, Livent will increasingly supply battery-grade lithium hydroxide to GM from its manufacturing facilities in the US, with the goal of transitioning 100% of Livent’s downstream lithium hydroxide processing for GM to North America. The agreement is expected to help secure supply for GM while assisting Livent in expanding its North American capabilities.
Both GM and Livent share a commitment to responsible operations and sustainable supply chains through industry and multi-stakeholder platforms. GM 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 engaged in an IRMA third-party assessment, has a gold rating from EcoVadis for sustainability, and has announced a goal of overall carbon neutrality by 2040.
“We are building a strong, sustainable, scalable and secure supply chain to help meet our fast-growing EV production needs,” explained Jeff Morrison, GM Vice President, Global Purchasing and Supply Chain. “We will further localise the lithium supply chain in North America over the course of the agreement. In addition, it is aligned with our approach to responsible sourcing and supply chain management and demonstrates our commitment to strong supplier relationships.”
“Importantly, GM now has contractual commitments secured with strategic partners for all battery raw material to support our goal of one million units of EV capacity by the end of 2025.”
“We are excited to begin this long-term relationship with GM, one of the most iconic brands in the automotive industry and a leading force in the transition to electrification. With a shared commitment to sustainability and responsible operations, we look forward to building a broad partnership that will support GM’s electric vehicle strategy, its supply chain goals and the future requirements of its growing EV fleet for reliable, high-performance lithium products,” concluded Paul Graves, President, and Chief Executive Officer of Livent.
GM will discussed this agreement as part of its earnings call on 26 July 2022, and Livent will do the same as part of its upcoming second quarter 2022 earnings call on 2 August.
