LONDON, June 30 (BUS) – Electric car battery startup Britishvolt has signed a deal with South Korean battery materials company Posco Chemical, aimed at securing supplies of cathode and anode materials, the two companies said Thursday.
The two companies have signed a Memorandum of Understanding and are working on a long-term agreement, which “paves the way to provide Britishvolt with a secure supply of active battery materials as we begin to ramp up trial production,” Britishvolt CEO Ural Ngari said in a statement.
British Vault said POSCO’s ownership of the mines and processing facilities across the battery sector would ensure “a comprehensive and stable supply and supply chain,” Reuters reports.
Earlier this year, Posco and US automaker General Motors announced that they would jointly build a $400 million plant to produce cathode materials that would be able to supply 1 million electric vehicles in North America by 2025.
Major automakers are racing to secure battery cell supplies, but finding enough raw materials for batteries could be an even bigger problem.
Inadequate supplies of lithium, nickel, manganese or cobalt could slow the transition to electric vehicles, increase the cost of these vehicles, and threaten profit margins for carmakers.
Carlos Tavares, CEO of Stellantis, said last month that he expects electric car battery shortages to hit the auto industry in 2024-2025 as manufacturers try to increase sales of electric cars while continuing to build new battery plants.
Britishvolt is working with British sports car makers Aston Martin and Lotus to develop high-performance EV batteries.
The startup has secured British government support for a battery factory project in northern England, and has unlocked 1.7 billion pounds ($2.1 billion) in private funding.