GM Signs Deal With Vianode For Synthetic Graphite Supply

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Graphite is used to make the anode (negative terminal) of most lithium-ion batteries and is the heaviest component of those batteries. There is only one problem. China controls that vast majority of battery grade graphite in the world. In the EU and the US, government policies strongly encourage battery supply chains that do not use materials or components sourced from China, and Norway’s Vianode thinks it has the answer.

On its website, Vianode says,”We are leading the transformation of creating a sustainable EV battery value chain. We empower battery and EV manufacturers to reduce their carbon footprint by replacing traditional, emission-heavy anode graphite with our innovative, high-performance anode graphite solutions. Anode graphite is the biggest part of lithium-ion batteries by weight, but only a small percentage of the cost. Choosing Vianode graphite reduces the CO2 emissions of battery manufacturing, in the most efficient way.” It goes on to say that the graphite used in batteries is responsible for about 10 percent to their cost but up to 40 percent of the carbon dioxide emissions attributable to them.

“At Vianode, it is our ambition to shape our industry while reducing the carbon footprint of synthetic graphite,” the company says. Making that happen just took a big step forward. General Motors has signed a long-term supply deal, which has a “multi-billion dollar value,” with Vianode to supply it with synthetic graphite, which it will manufacture at a factory in North America. It will be supplied to Ultium Cells, GM’s joint venture with LG Energy Solution, and be used to produce next-generation EV batteries and drive units.

Vianode Plans Production In North America In 2027

Production at the new factory is slated to begin in 2027, according to Automotive Dive. By 2030, the company expects to produce enough synthetic graphite for 3 million electric cars a year. Jeff Morrison, senior vice president of global purchasing and supply chain at General Motors, highlights the significance of the partnership. “The project will help advance our battery technology and drive greater value to our customers,” he said recently. “The entire EV ecosystem depends upon the import of one critical mineral,” added Burkhard Straube, CEO at Vianode. “What we and General Motors want is a resilient supply chain for North America.”

Just exactly where that North American factory will be located is a matter of some conjecture. Electric Autonomy reports that Vianode is in talks with Canadian officials at the national and provincial level. Lobbying records show the company was discussing opportunities for a graphite factory in Quebec since July of 2023. By the fall of that year, it was also in discussions with the federal government. While the conversations with Quebec appear to have halted as of June 2024, Vianode’s lobby registrations with the federal government are still active. In addition, Vianode registered Vianode Canada as an Ontario business, but has no lobbyist registered in that province at the present time. Currently, Vianode says it is hiring for eight positions in North America — two in Michigan and six in Toronto. One of the Toronto job postings refers to “our exciting new large-scale plant in Canada,” which suggests a decision on location has already been made.

The Politics Of Everything

The kicker, of course, is what will Emperor Donald The First and Obergruppenführer Musk do when it comes to imposing tariffs on imports from Canada? One suspects the powers that be at Vinanode and GM are huddling at the moment trying to figure out what that pair has in mind. The Donald has said February 1 might be a lovely time to slap all Canadian products with a 25 percent tariff. Talk about a bull in a china shop! Business thrives on predictably, so how does business handle a situation where the rules change on a daily or even hourly basis?

Vianode’s synthetic graphite production boasts a 90% lower carbon footprint than conventional methods, making it an environmentally sustainable alternative. Additionally, synthetic graphite offers scalability advantages over mined graphite. “The EV industry is still growing and exploring a new mine will take a decade, maybe longer. You can build another plant with synthetic graphite in two or three years,” said Burkhard Straube, CEO of Vianode. The accelerated scalability provides a significant edge in meeting the growing demand for EV batteries while aligning with global sustainability goals.

“Vianode’s advanced battery materials enable cost-efficient batteries and EVs with better performances at a fraction of the carbon emissions of conventional technologies. Our recent creation of Vianode North America and this agreement to supply GM’s North American EV business are key building blocks for a local, resilient supply chain for critical battery materials outside of Asia. We are proud of and honored that GM has chosen us as a strategic partner. This underlines Vianode’s capability and the way in which we will contribute to shaping the North American battery value chain,” Straube said.

Cleaning Up Battery Supply Chains

The partnership represents a pivotal step for GM as it seeks to bolster its EV battery technology and reduce reliance on international supply chains. By investing in synthetic graphite, it is reinforcing its leadership role in the EV industry and supporting the development of a sustainable and resilient North American supply chain. With production set to begin in 2027, the partnership is poised to reshape the EV supply chain landscape and support the industry’s transition to a cleaner, more sustainable future. My colleague Tina Casey reported recently on another synthetic graphite company — Novonix — that is setting up shop in Tennessee. And there are companies that are planning to eliminate the need for graphite in batteries altogether by substituting silicon.

“Vianode empowers battery and EV manufacturers to reduce their carbon footprint. We introduced a new industry standard with a verified climate impact of 1.9 kg CO2 equivalents per kilogram of graphite, and target to nearly halve this by 2030. We look forward to collaborating with GM to further develop high-performance products that enable EVs with faster charging, longer range and extended lifespan,” says Dr. Stefan Bergold, the CCO of Vianode.

Vianode has produced synthetic graphite at its industrial pilot plant in Norway since 2021. The company’s supply deal with GM follows a multi-year qualification process which demonstrated that the synthetic anode graphite produced at the pilot plant meets rigorous performance and validation requirements, according to a press release. Natural graphite comes from mines and must be purified using hydrofluoric acid and sodium hydroxide, a process that can be hazardous to surrounding ecosystems.

Readers may recall that after the fire at a battery storage facility in Moss Landing, California, last week, health officials were testing the air for the presence of fluorine gas before allowing local residents to go outside after a shelter in place order was lifted. It seems a safe assumption that batteries made with synthetic graphite might be easier to recycle because there would be less risk of creating hazardous conditions in the process.

The other consideration, of course, is breaking China’s stranglehold on EV materials and components. That will be essential to establishing local supply chains, now that the neoliberal love affair with globalization appears to be dead and buried. It is heartening to see that General Motors is not abandoning its plans to produce battery electric cars even though the tide at the highest levels of the US government has turned against them.