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General Motors Company GM has entered into a multimillion-dollar agreement with Norwegian battery supplier, Vianode, to secure synthetic graphite anode materials starting in 2027. The deal is set to run through 2033 once Vianode establishes production facilities in North America. These materials will be utilized by Ultium Cells LLC, GM’s battery joint venture with LG Energy Solution, for manufacturing advanced batteries and drive units. The agreement may extend to other GM joint ventures in the future.
Anode graphite, which accounts for the largest share of a lithium-ion battery’s weight, is primarily sourced from China, which dominates 95% of the global supply. Vianode, however, offers a more sustainable alternative, producing synthetic anode graphite with a carbon dioxide footprint 90% lower than that of conventional methods. Per Jeff Morrison, GM's senior vice president of global purchasing and supply chain, this move aligns with General Motors’ broader strategy to create a sustainable and localized battery supply chain in North America.
Under the agreement, Vianode will produce synthetic graphite in North America, with operations expected to begin in 2027. GM selected the supplier after a rigorous multi-year qualification process, which included evaluations of materials produced at Vianode’s pilot plant in Norway.
Vianode’s production process relies on high-temperature methods to create synthetic graphite, differing from the extraction of natural graphite from carbon-rich rock formations. In its initial phase, the planned North American plant, likely in the United States or Canada, aims to produce approximately 80,000 tons of synthetic graphite annually by 2030, enough to support the manufacturing of around 1.5 million EVs. Vianode already operates a production facility in Herøya, Norway.
GM’s Zacks Rank & Other Key Picks
General Motors currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Blue Bird Corporation BLBD and XPeng Inc. XPEV. While GELYY & BLBD sport a Zacks Rank #1 each, XPEV carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings suggests year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for BLBD’s fiscal 2025 sales and earnings suggests year-over-year growth of 10.97% and 12.14%, respectively. EPS estimates for fiscal 2025 have improved 18 cents in the past 60 days.
The Zacks Consensus Estimate for XPEV’s 2024 sales and earnings suggests year-over-year growth of 27.31% and 42.26%, respectively. EPS estimates for 2024 and 2025 have improved 4 cents and a penny, respectively, in the past 60 days.