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Lithium producer Livent inks long-term supply agreement with General Motors

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(Kitco News) - Livent (NYSE: LTHM) announced today a significant multi-year sourcing agreement with General Motors in which Livent will supply GM with battery-grade lithium hydroxide made primarily from lithium extracted at Livent's brine-based operations in South America.

Livent said it will provide battery-grade lithium hydroxide to GM over a six-year period beginning in 2025, adding that over the course of the agreement, the company will increasingly supply battery-grade lithium hydroxide to GM from its manufacturing facilities in the U.S., with the goal of transitioning 100% of Livent's downstream lithium hydroxide processing for GM to North America. 

According to the company’s statement, the lithium hydroxide from Livent will be used in GM's Ultium battery cathodes, which will power electric vehicles such as the recently revealed Chevrolet Blazer EV, Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.

In its press-release, GM pointed out that it has contractually secured all battery raw materials to support its goal of 1 million units of EV capacity in North America by the end of 2025.

Paul Graves, President and CEO of Livent commented, "We are excited to begin this long-term relationship with GM, one of the most iconic brands in the automotive industry and a leading force in the transition to electrification. With a shared commitment to sustainability and responsible operations, we look forward to building a broad partnership that will support GM's electric vehicle strategy, its supply chain goals and the future requirements of its growing EV fleet for reliable, high-performance lithium products." 

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Livent noted it is a leading vertically integrated pure-play producer of low-cost lithium, selling to leading electric vehicle OEMs and battery manufacturers worldwide. The company operates 7 manufacturing and sourcing sites across 4 continents supported by ~1,100 employees.

The company’s primary products, namely battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal are critical inputs used in various performance applications.

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