Ford, GM in talks with Posco Chemical on battery metal hubs

By Heejin Kim, with assistance from Gabrielle Coppola, Keith Naughton and David Welch

2022.11.14

Ford Motor Co., General Motors Co., and Stellantis NV are in talks with South Korea’s Posco Chemical Co. about potentially investing in plants producing electric-vehicle battery materials in North America, according to people familiar with the matter.

The factories would make cathode-active or anode materials — key ingredients for determining the energy density of lithium-ion batteries used in cars — said the people, asking not to be identified because the discussions are private. The talks are preliminary and may not necessarily lead to a deal, according to the people. Posco Chemical is also talking to other automakers about similar investments, they added.

A spokesperson for Posco Chemical declined to comment, while representatives for Ford, Stellantis, and GM all declined to comment.

Posco Chemical’s Chief Executive Officer Min Kyung-zoon told reporters on Nov. 1 that the Korean company is in talks with three carmakers to build battery-materials plants in the US, without naming them. It already has a relationship with GM, in July signing a $10.8 billion deal to supply battery materials, bringing the total value of its contracts with the US carmaker to almost $17 billion.

GM is investing $35 billion to make its lineup fully electric by 2035, while Ford is plowing $50 billion into its pivot to EVs, with plans to build 2 million a year by 2026. Stellantis, the maker of Ram pickups and Jeep off-roaders, is targeting 75 fully-electric models by 2030 with annual sales of 5 million vehicles.