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General Motors (GM) Partners Lithion & Toledo to Spur EV Game
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To transition to a circular battery ecosystem, General Motors (GM - Free Report) recently announced that its investment wing, GM Ventures, has invested in Lithion Recycling Inc.'s Series A financing round, facilitating a new GM-Lithion partnership.
The collaboration will validate Lithion's recovered battery materials so that they can be used in the production of new batteries and also focus on its potential to acquire battery materials. It will also aim for joint investment in research and development of recycling processes and recyclability of future battery design.
With a recovery rate of more than 95% and using Québec's green energy, Lithion's operations will bring down greenhouse gas emissions and water usage by more than 75% and 90%, respectively, contrary to mining battery materials.
Lithion has worked toward developing an efficient and cost-effective process to recover strategic materials from end-of-life and industrial waste of lithium-ion batteries. Lithion will launch its first commercial recycling operations in 2023, relying on data from its highly successful industrial-scale demonstration plant commissioned in January 2020. The facility will strive for an annual capacity of 7,500 metric tons of lithium-ion batteries. Next in line in 2025 is Lithion's first hydrometallurgical plant. It intends to start multiple facilities in the United States, Europe and Korea to oversee the rapid deployment and enhanced battery end-of-life management globally.
In another development, the US legacy automaker will invest $760 million at its Toledo, OH propulsion manufacturing operations to start production of drive units that will be used in future Ultium-based battery electric trucks, like the Chevrolet Silverado EV, GMC Sierra EV and GMC HUMMER EVs. The Toledo Propulsion Systems will be the company’s first U.S. powertrain or propulsion-related manufacturing facility to be transformed to cater to EV-related production.
Once the plant is ready, it will produce GM’s family of EV drive units covering cover front-wheel drive, rear-wheel drive and all-wheel drive propulsion combinations, including high-performance and off-road capabilities. The Toledo Propulsion Systems will build premium transmission products simultaneously with drive units during the transition timeframe. Restoration work will commence this month.
The Toledo unit was purchased by GM in 1956 and currently builds GM’s six-speed, eight-speed and 10-speed rear-wheel drive and nine-speed front-wheel-drive transmissions that are used in a variety of Chevrolet, Buick, GMC and Cadillac products. The recent investment has taken the total capital to $1.9 billion at Toledo since 2011. The facility presently employs nearly 1,500 people. Now, it seeks to bring more employees along in its EV transformation. The United Auto Worker members are enthusiastic to partake in the journey.
General Motors’ Electrification Strides
GM is focused on its efforts to scale up battery cell and EV production in North America. To rev up its electrification drive, it has laid out an ambitious two-year milestone to scale up capacity between 2023 and 2025. It intends to reach a production volume of 1 million EVs in North America and China each by 2025. To ensure that it remains on the trajectory, General Motors is intensively expanding its electrification drive with the planned ramp-up of EV production and EV battery charging networks. It also plans to do away with tailpipe emissions from all its new light-duty vehicles by 2035 and thereby, is developing a supply chain and recycling strategy. Lithion's technology will enable it to recover and reuse raw material in its Ultium battery packs, making the EVs more sustainable and economical.
GM’s launch of Ultium Charge 360, aimed at improving the charging experience, has garnered considerable attention. GM has formed a joint venture, Ultium Cells, with LG Energy Solution. Together, the companies are heavily investing in battery cell manufacturing in the United States. In August, the venture opened its first U.S. battery cell plant, with two plants underway.
Moreover, recently GM secured binding agreements for a long-term supply of lithium from Livent and cathode materials from LG Chem to realize its goal of 1 million EVs, securing all its battery raw materials to reach annual planned capacity in 2025, including lithium, nickel, cobalt and full cathode active material supply. As the company moves forward, it will work to increasingly localize its battery materials supply chain to North America.
Per the agreement with LG Chem, the company will supply GM with 968,000 tons of cathode material between now and 2030, sufficient to build 5 million EVs. The agreement with Livent will provide significant quantities of lithium for high-performance EVs. Lastly, POSCO Chemical will provide a near-term supply of Cathode Active Material from its South Korean operations between 2023 and 2025.
Shares of General Motors have lost 33.3% in the past year compared with its industry’s 12.3% decline.
Yamaha has an expected earnings growth rate of 1% for 2023. The Zacks Consensus Estimate for current-year earnings has been revised 11.6% upward in the past 30 days.
Yamaha’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. YAMHF pulled off a trailing four-quarter earnings surprise of 47.95%, on average. The stock has declined 32.7% over the past year.
PACCAR has an expected earnings growth rate of 45.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
PACCAR’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. PCAR pulled off a trailing four-quarter earnings surprise of 7.44%, on average. The stock has risen 2.7% in the past year.
Visteon has an expected earnings growth rate of 144.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Visteon’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. VC pulled off a trailing four-quarter earnings surprise of 400.13%, on average. The stock has risen 12.8% in the past year.
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General Motors (GM) Partners Lithion & Toledo to Spur EV Game
To transition to a circular battery ecosystem, General Motors (GM - Free Report) recently announced that its investment wing, GM Ventures, has invested in Lithion Recycling Inc.'s Series A financing round, facilitating a new GM-Lithion partnership.
The collaboration will validate Lithion's recovered battery materials so that they can be used in the production of new batteries and also focus on its potential to acquire battery materials. It will also aim for joint investment in research and development of recycling processes and recyclability of future battery design.
With a recovery rate of more than 95% and using Québec's green energy, Lithion's operations will bring down greenhouse gas emissions and water usage by more than 75% and 90%, respectively, contrary to mining battery materials.
Lithion has worked toward developing an efficient and cost-effective process to recover strategic materials from end-of-life and industrial waste of lithium-ion batteries. Lithion will launch its first commercial recycling operations in 2023, relying on data from its highly successful industrial-scale demonstration plant commissioned in January 2020. The facility will strive for an annual capacity of 7,500 metric tons of lithium-ion batteries. Next in line in 2025 is Lithion's first hydrometallurgical plant. It intends to start multiple facilities in the United States, Europe and Korea to oversee the rapid deployment and enhanced battery end-of-life management globally.
In another development, the US legacy automaker will invest $760 million at its Toledo, OH propulsion manufacturing operations to start production of drive units that will be used in future Ultium-based battery electric trucks, like the Chevrolet Silverado EV, GMC Sierra EV and GMC HUMMER EVs. The Toledo Propulsion Systems will be the company’s first U.S. powertrain or propulsion-related manufacturing facility to be transformed to cater to EV-related production.
Once the plant is ready, it will produce GM’s family of EV drive units covering cover front-wheel drive, rear-wheel drive and all-wheel drive propulsion combinations, including high-performance and off-road capabilities. The Toledo Propulsion Systems will build premium transmission products simultaneously with drive units during the transition timeframe. Restoration work will commence this month.
The Toledo unit was purchased by GM in 1956 and currently builds GM’s six-speed, eight-speed and 10-speed rear-wheel drive and nine-speed front-wheel-drive transmissions that are used in a variety of Chevrolet, Buick, GMC and Cadillac products. The recent investment has taken the total capital to $1.9 billion at Toledo since 2011. The facility presently employs nearly 1,500 people. Now, it seeks to bring more employees along in its EV transformation. The United Auto Worker members are enthusiastic to partake in the journey.
General Motors’ Electrification Strides
GM is focused on its efforts to scale up battery cell and EV production in North America. To rev up its electrification drive, it has laid out an ambitious two-year milestone to scale up capacity between 2023 and 2025. It intends to reach a production volume of 1 million EVs in North America and China each by 2025. To ensure that it remains on the trajectory, General Motors is intensively expanding its electrification drive with the planned ramp-up of EV production and EV battery charging networks. It also plans to do away with tailpipe emissions from all its new light-duty vehicles by 2035 and thereby, is developing a supply chain and recycling strategy. Lithion's technology will enable it to recover and reuse raw material in its Ultium battery packs, making the EVs more sustainable and economical.
GM’s launch of Ultium Charge 360, aimed at improving the charging experience, has garnered considerable attention. GM has formed a joint venture, Ultium Cells, with LG Energy Solution. Together, the companies are heavily investing in battery cell manufacturing in the United States. In August, the venture opened its first U.S. battery cell plant, with two plants underway.
Moreover, recently GM secured binding agreements for a long-term supply of lithium from Livent and cathode materials from LG Chem to realize its goal of 1 million EVs, securing all its battery raw materials to reach annual planned capacity in 2025, including lithium, nickel, cobalt and full cathode active material supply. As the company moves forward, it will work to increasingly localize its battery materials supply chain to North America.
Per the agreement with LG Chem, the company will supply GM with 968,000 tons of cathode material between now and 2030, sufficient to build 5 million EVs. The agreement with Livent will provide significant quantities of lithium for high-performance EVs. Lastly, POSCO Chemical will provide a near-term supply of Cathode Active Material from its South Korean operations between 2023 and 2025.
Shares of General Motors have lost 33.3% in the past year compared with its industry’s 12.3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
GM carries a Zacks Rank #3 (Hold) currently.
Some better-ranked players in the auto space include Yamaha Motor Co. (YAMHF - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and PACCAR (PCAR - Free Report) and Visteon Company (VC - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Yamaha has an expected earnings growth rate of 1% for 2023. The Zacks Consensus Estimate for current-year earnings has been revised 11.6% upward in the past 30 days.
Yamaha’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. YAMHF pulled off a trailing four-quarter earnings surprise of 47.95%, on average. The stock has declined 32.7% over the past year.
PACCAR has an expected earnings growth rate of 45.3% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
PACCAR’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. PCAR pulled off a trailing four-quarter earnings surprise of 7.44%, on average. The stock has risen 2.7% in the past year.
Visteon has an expected earnings growth rate of 144.1% for the current year. The Zacks Consensus Estimate for current-year earnings has remained constant in the past 30 days.
Visteon’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one. VC pulled off a trailing four-quarter earnings surprise of 400.13%, on average. The stock has risen 12.8% in the past year.