The Canadian government and the local government of Quebec have committed to providing C$300 million (US$221 million) in funding for General Motors and POSCO Future M’s new cathode plant in Quebec.
The Korea Times reported that Canadian Industry Minister Francois-Philippe Champagne announced the major investment on Monday when he visited the construction site, approximately halfway between Montreal and Quebec City.
“Canada has everything it needs to be a global leader in battery manufacturing: access to global markets, a highly talented workforce, clean energy, world-leading innovation and all the critical mineral resources necessary to make batteries.
This investment in GM-POSCO’s new facility in Bécancour will help further position Quebec as a key hub in Canada’s growing EV supply chain. This investment is good for the environment and for the economy, and it will ensure well-paying jobs for years to come.”
Industry Minister Francois-Philippe Champagne
Notably, Quebec Premier Francois Legault and other government officials were also present during the important announcement.
“Quebec’s battery sector is up and running. This is a historic investment by GM and POSCO. Thanks to its natural resources, talent and renewable energy, Quebec is attracting the giants of the electrification industry. We will be announcing additional transformative projects shortly. Quebec is where the world’s greenest batteries will be produced.”
Quebec Premier Francois Legault
About the joint venture
American automaker GM and South Korean industrial materials firm POSCO Future M initially announced the “Ultium CAM” joint venture in late-2021, marking the country’s first-ever cathode factory.
Now, POSCO Chemical stated that both parties have officially finalized the Ultium CAM JV with a combined $327 million investment. The South Korean company and the established automaker will control 85% and 15% shares, respectively.
As mentioned, the JV will establish a Cathode Active Materials (CAM) factory in North America, with an annual production capacity target of 30,000 tons. It is expected to supply GM’s Ultium Cells, LLC factories in the US.
For those unaware, CAM is among the key materials in li-ion batteries used in electric vehicles. It consists of nickel, lithium, and other critical minerals, which define the EV battery power and contribute to about 40% of the battery cost.
The JV is expected to generate approximately 200 new job opportunities when it fully operates in 2025. Meanwhile, the partners aim to finish construction in the second half of 2024.
“Our project has stayed on schedule thanks to our excellent local construction and engineering partners. We will soon begin our hiring and training of permanent employees for our operations, which will begin in 2025.”
Cha Chi-gyu, Ultium CAM President
See Also:
- General Motors, Samsung SDI to invest over $3 billion in a US battery plant
- General Motors to halt Chevy Bolt EV/EUV production by the end of 2023
- General Motors leads $50 million funding round in EnergyX for lithium supply in the US
- General Motors launches its Dealer Community Charging Program
- General Motors installs the first of 40,000 new electric vehicle chargers
Indeed, the government’s financial support will aid Ultium CAM in establishing a stable supply chain for key battery materials in North America.
