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General Motors and POSCO Chemical announced that they are working with the governments of Canada and Quebec to build a new facility in Bécancour, Quebec, estimated at $500 million. The new facility will produce cathode active material (CAM) for GM’s Ultium batteries, which will power electric vehicles such as the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.
The companies previously announced plans to form a CAM processing joint venture in December 2021, majority owned by POSCO Chemical. Construction on the new facility, which the joint venture will operate, will begin immediately and will create approximately 200 jobs. The site’s construction will allow for future expansion opportunities as GM continues to pursue many potential future EV supply chain projects.
“GM and our supplier partners are creating a new, more secure and more sustainable ecosystem for EVs, built on a foundation of North American resources, technology and manufacturing expertise,” said Doug Parks, GM executive vice-president, global product development, purchasing and supply chain. “Canada is playing an important role in our all-electric future, and we are grateful for the strong support we have received from local, provincial and national officials to grow a North American-focused EV value chain.”
The Quebec site will process CAM, a key battery material consisting of components like processed nickel, lithium and other materials representing about 40% of the cost of a battery cell.
“It is so exciting to see GM Canada and Quebec playing a key role in building the emerging ‘mines to mobility’ EV battery ecosystem in North America,” said Scott Bell, president and managing director, GM Canada. “With this new processing facility in Bécancour, GM will help lead the EV battery supply chain while also launching Canada’s first full EV manufacturing plant in Ingersoll, Ontario, later this year.”
“POSCO Chemical is set to expand battery material supplying capability across North America through establishing a cathode material plant in Canada,” said Min Kyung-Zoon, CEO of POSCO Chemical. “We will lead the successful transition to the EV era by further strengthening the strategic partnership with GM and securing a production line with world-class technological competitiveness.”
By the end of 2025, GM plans to have capacity to build one million electric vehicles in North America, and the company targets the majority of components by value to be sustainably sourced, processed or manufactured in North America.