General Motors (GM) has entered into a significant multi-billion dollar agreement with Vianode, a Norwegian battery materials company, to secure a supply of synthetic graphite for its electric vehicle (EV) batteries. This strategic move is set to commence in 2027, when Vianode plans to start production at a new facility in North America, and will continue through 2033. The synthetic graphite will be utilized by Ultium Cells, GM's battery cell manufacturing joint venture with LG Energy Solution, to produce next-generation EV batteries.

The deal comes at a time when China controls approximately 95% of the global graphite supply, prompting Western automakers and governments to seek alternative sources for this critical material. Vianode's synthetic graphite offers a 90% lower carbon dioxide footprint compared to traditional production methods, aligning with GM's sustainability goals and the broader push towards eco-friendly technologies in the automotive industry.

Jeff Morrison, GM's senior vice president of global purchasing and supply chain, emphasized that this project will advance GM's battery technology and drive greater value to customers. Vianode's CEO, Burkhard Straube, highlighted the importance of establishing a resilient supply chain in North America, reducing dependency on imports from Asia.

The planned North American plant, which could be located in either the U.S. or Canada, is expected to produce around 80,000 tons of synthetic graphite annually by 2030, sufficient to supply approximately 1.5 million EVs. Vianode already operates a facility in Herøya, Norway, and is in discussions with other automakers to expand its supply network.

This agreement not only strengthens GM's position in the competitive EV market but also supports the company's efforts to build a sustainable and localized supply chain for critical battery materials. The move is part of a broader trend in the automotive industry to diversify supply chains and reduce reliance on volatile markets, particularly in light of recent geopolitical tensions and environmental concerns.