AESC, a Japan-headquartered global leader in the development and manufacturing of high-performance batteries for electric vehicles and energy storage systems, announced it has signed a long-term supply agreement with leading circular materials technology company Umicore. The agreement will provide AESC with critical materials for manufacturing electric vehicle (EV) batteries in the Company’s U.S. manufacturing facilities.
The partnership is expected to further enhance AESC’s pioneering next-generation battery technologies and strengthen its commitment to the U.S. market. In line with the “local for local” principle, the agreement will diversify AESC’s global supply chain network with additional regional supply resources and support its ability to meet the evolving needs of its contracted customers, including global OEMs such as BMW Group and many others.
“As we maintain a steadfast commitment to the development of cutting-edge EV battery technology, we are excited to partner with Umicore. This partnership and the supply chain enhancements it brings will allow our company to leverage Umicore’s proven ability to provide critical, high-quality materials at scale and advance our leadership in developing advanced and reliable EV batteries,” said Shoichi Matsumoto, CEO of AESC. “As we fortify our manufacturing presence in the U.S., a key, fast-growing market for EVs, and strengthen our R&D capabilities worldwide, this partnership further positions AESC as the partner of choice for the global automotive industry.”
The agreement includes the supply of cathode active materials (CAM) and represents an annual capacity of 50 GWh by the end of the decade. CAM is the most critical element in determining the performance of rechargeable batteries, while high nickel content is key to driving long-range cars, as it ensures increased energy density and storage capacity.
Under the terms of the agreement, AESC will begin receiving supplies in 2026 from Umicore’s factory in Cheonan, Korea, followed by additional supplies to be delivered from Umicore’s plant in Loyalist, located in Ontario, Canada, once the plant begins production.
“We are very proud to join forces with AESC and to support AESC and its customers with their global success and expansion. Our shared commitment to the principles of local-for-local battery value chains unites our efforts towards clean, electric mobility,” said Mathias Miedreich, CEO of Umicore. “Moreover, this partnership highlights the success of our global strategy to pioneer sustainable battery materials value chains close to our customers and validates our leadership and the reliability of our battery technologies.”
“We pursue a globally balanced procurement strategy in the three main geographical regions of the world. AESC, our battery cell supplier in the US, will source key primary materials from Canada going forward. This is a further step in refining our supply chain for vehicle production at our US plant in Spartanburg, in line with the principle ‘local for local’. Short distances ensure efficiency and robustness,” said Joachim Post, member of the Board of Management of BMW Group responsible for Purchasing and Supplier Network.
The partnership with Umicore builds on AESC’s growing U.S. footprint, which currently includes battery plants in Kentucky, South Carolina, and Tennessee. By 2026, AESC’s U.S. plants will provide up to 70 GWh capacity annually, powering the shift to electric vehicles with North American-made batteries and components.