11 November | Trades

Ford and GM are negotiating with Posco to invest in battery materials production

South Korea's Posco Chemical may receive investment from Ford Motor, General Motors and Stellantis to develop plants to produce battery materials for electric cars in North America. The companies are already discussing. This is reported by reliable sources.

The key components of lithium-ion batteries for automobiles are cathode-active or anode materials. Posco Chemical plants will produce these materials. This was reported by people who asked to remain anonymous because the conversations were private events. Also, it is known that these are only preliminary negotiations and may not lead to a deal. In addition, other automakers are also talking to Posco Chemical for similar investments.

As a trend in recent months, U.S. companies such as Honda Motor, Ford and Stellantis have merged with South Korean battery makers LG Energy Solution, SK Innovation and Samsung SDI. All this for investing billions in the development of battery plants in North America.

The U.S. government is keeping the automakers under pressure to reduce their dependence on Chinese batteries and materials. This has led to increased competition in this area of cooperation.

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