General Motors Raises FY Outlook; To Build A Cathode Plant In North America

(RTTNews) - Auto giant General Motors (GM) has raised its 2021 profit outlook reflecting demand for vehicles in the U.S., despite ongoing global shortage of chips that has affected the auto manufacturer's production.

According to CFO Paul Jacobson, General Motors now expects full-year 2021 adjusted EBIT to be about $14.0 billion, higher than the previous outlook of the high end of the range of $11.5 billion to $13.5 billion.

Separately, General Motors and POSCO Chemical announced plans to form a joint venture to build a factory in North America to process critical battery materials for GM's Ultium electric vehicle platform.

The joint venture will process Cathode Active Material (CAM), a key battery material that represents about 40 percent of the cost of a battery cell. The location of the facility will be announced later. The project, which will create hundreds of jobs, is expected to opens in 2024.

"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. "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 new facility will supply the Ultium Cells LLC facilities GM and LG Energy Solution are building in Lordstown, Ohio and Spring Hill, Tennessee.