General Motors has inked a multimillion-dollar deal with a Norwegian battery supplier for its synthetic graphite anode materials starting in 2027.
The companies said Wednesday that once Vianode launches production in North America, the deal will run through 2033.
“This project will help advance our battery technology and drive greater value to our customers,” Jeff Morrison, GM’s senior vice president of global purchasing and supply chain, said in a statement.
“The entire EV ecosystem depends upon the import of one critical mineral,” Vianode CEO Burkhard Straube said in an interview with Reuters. “What General Motors wants and we want is a resilient supply chain for North America.”
In its first planned phase, the plant — which could be in the U.S. or Canada — should produce around 80,000 tons of synthetic graphite annually by 2030, or enough to supply around 1.5 million EVs. Vianode already has a production plant in operation in Herøya, Norway.
Why automakers are interested in synthetic graphite
The main driver of synthetic graphite development? Claims that Vianode’s synthetic anode graphite has a 90% lower Co2 footprint than traditional forms.
Sam Abuelsamid, vice president of market research at Telemetry Insights, said the supply chain for real graphite is problematic for political and environmental reasons.
Companies that rely on pulling materials out of the ground in South America, shipping those to China for processing, and then sending it to North America or Europe add significant emissions to battery production. China controls 95% of the global supply of graphite.
Having a viable source of synthetic graphite produced from other forms of carbon is important for manufacturers of electric batteries, Abuelsamid said. Graphite holds onto the positively charged lithium ions and negatively charged electrons. When you drive the vehicle, the electrons are released from the graphite, they go through the circuit outside the vehicle battery, through the motor and back to the cathode on the other side of the cell, and the lithium ions are released back to the cathode and get rejoined to the electrons after the fact.
“The key to the graphite, it acts like a sponge that holds lithium ions and electrons in place until they’re needed to provide power,” Abuelsamid said. “Graphite is necessary to both maintain and grow the volume — both the size and quantity — of batteries required for EVs.”
Jackie Charniga covers General Motors for the Free Press. Reach her at [email protected].
This is a developing story.