Britishvolt signs deal with Posco Chemical for battery materials

Posco Future M

30/06/2022 24:01

By Nick Carey
    LONDON, June 30 (Reuters) - Electric vehicle (EV) battery
startup Britishvolt has signed a deal with South Korean battery
materials firm Posco Chemical  003670.KS  designed to secure the
supply of cathode and anode materials, the two companies said on
Thursday.
    The two companies have signed a memorandum of understanding
and are working on a longer-term agreement, which "paves the way
to providing Britishvolt with a secure supply of active battery
materials as we start to ramp up pilot production", Britishvolt
chief executive Orral Nadjari said in a statement. 
    Britishvolt said Posco's ownership of mines and processing
facilities across the battery sector would ensure "end-to-end,
stable, supply chain supply". 
    Earlier this year, Posco and U.S. carmaker General Motors
 GM.N  announced they would jointly build a $400 million plant
to produce cathode materials that will be able to supply 1
million EVs in North America by 2025.  urn:newsml:reuters.com:*:nL3N2VA3N2
    Major carmakers have been racing to secure battery cell
supplies, but finding enough battery raw materials may be a
bigger problem.
    Failure to obtain adequate supplies of lithium, nickel,
manganese or cobalt could slow the shift to EVs, make those
vehicles more expensive and threaten carmakers' profit margins.
 urn:newsml:reuters.com:*:nL1N2R70M2
    Stellantis CEO Carlos Tavares said last month he expected a
shortage of EV batteries would hit the auto industry in
2024-2025 as manufacturers try to ramp up EV sales while still
building new battery factories.  urn:newsml:reuters.com:*:nL2N2XG1ZP
    Britishvolt is working with British sports carmakers Aston
Martin  AML.L  and Lotus to develop high-performance EV
batteries.  urn:newsml:reuters.com:*:nL2N2V90IT  urn:newsml:reuters.com:*:nL1N2U70RZ
    The startup has secured UK government backing for a battery
plant project in northern England, unlocking 1.7 billion pounds 
($2.1 billion) in private funding. urn:newsml:reuters.com:*:nL1N2U00UZ
    ($1 = 0.8224 pounds)

 (Reporting by Nick Carey
Editing by Mark Potter)
 ((nick.carey@thomsonreuters.com; +44 7385 414 954;))