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LONDON, Jan 15 (Reuters) - General Motors has signed a multi-year, multi-billion dollar agreement with Norway's Vianode to supply synthetic graphite anode materials for its electric vehicle (EV) batteries. The deal, announced on Wednesday, will see Vianode providing synthetic graphite to Ultium Cells, the joint venture between GM and LG Energy Solution, starting in 2027 when Vianode's production facility in North America comes online, and running through 2033.

"This project will help advance our battery technology and drive greater value to our customers," said Jeff Morrison, GM's senior vice president of global purchasing and supply chain.

With China currently dominating 95% of the global graphite supply crucial for EV battery production, Western automakers are seeking alternative sources. Vianode's CEO, Burkhard Straube, underscored the importance of establishing a resilient supply chain for North America, aiming to reduce dependence on Chinese imports.

Vianode's production plant, planned for either the United States or Canada to cater to GM and LG's battery production facilities, is projected to yield 80,000 tons of synthetic graphite annually by 2030, enough for approximately 1.5 million EVs. The company already operates a production plant in Herøya, Norway, and is engaged in discussions to supply other automakers with their synthetic anode graphite.

Straube highlighted that Vianode's synthetic graphite boasts a significantly lower CO2 footprint compared to traditional production methods and can be scaled up more rapidly than establishing a new mining operation, potentially within a span of two to three years versus a decade or longer for a mining venture.