Ultium to Be Supplied to Nikola and Honda
The author is an analyst of NH Investment & Securities. He can be reached at j.ko@nhqv.com. -- Ed.
Ultium rechargeable batteries for EVs are to be applied to GM’s BEV3 platform. Recently, planned Ultium adoption is expanding to include manufacturers such as Nikola and Honda. We view the strengthening influence of Ultium as favorable for the Korean rechargeable battery market, as LG Chem is to be in charge of production, and a range of domestically-produced battery materials are to be used.
Ultium battery overview
GM has announced that Ultium batteries (rechargeable batteries for next-gen EVs) will be applied to its BEV3 EV production platform (scheduled for full operation from 2021). GM EVs to be powered by Ultium include the GMC Hummer EV, Cadillac LYRIQ, and Cruise Origin. We note that the influence of Ultium is strengthening as of late, as planned supply is diversifying from GM to include Nikola and Honda. Nikola is planning to use Ultium for its Badger EV pickup truck from 2022, and Honda is to use Ultium in two of its EVs set for release in 2024.
Ultium production is to take place at Gigapower Factory (tentative name), a joint US operation set up by LG Chem (stake of 50%) and GM (50%). With a capacity of over 30GWh, Gigapower Factory is expected to see full-scale mass production from Jan 2022.
Ultium batteries to be ‘Made in Korea’
LG Chem is to take charge of Ultium production, which is to see the use of NCMA cathode materials and anode materials featuring silicon-based additives. Of note, expectations for the use of silicon-based additives in Ultium’s anode materials stem from details revealed by the Ultium technology roadmap, which was partially disclosed at the announcement of a strategic alliance between GM and Nikola.
Major companies in LG Chem’s rechargeable battery value chain (including NCMA and silicon-based additive materials manufacturers) are hiking their production capacities. For example, POSCO Chemical and L&F are strategically concentrating their resources on NCMA materials, while Daejoo Electronic Materials is focusing on silicon additives. We view the rising influence of Ultium as favorable for the Korean rechargeable battery market.