Estimated at $400 million (C$500 million/£305 million/€368 million), the new facility will produce cathode active material (CAM) for GM’s Ultium batteries. These will be used to power the brand’s electric vehicles (EVs) including the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ.
The companies previously announced plans to form a cathode active material (CAM) 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 electric vehicle supply chain projects.
Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain, said: “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.
“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 percent of the cost of a battery cell.
Scott Bell, GM Canada president and managing director, said: “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.
“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.”
Min Kyung-Zoon, POSCO Chemical CEO, said: “POSCO Chemical is set to expand battery material supplying capability across North America through establishing a cathode material plant in Canada.
“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.”
Last year GM announced that the company would increase its investment to $35 billion in autonomous and electric vehicles (EVs) through 2025. The company targets the majority of components by value to be sustainably sourced, processed or manufactured in North America.
With the company working towards an all-electric future, GM plans to have the capacity to build one million electric vehicles in North America and has committed to 30 new global electric vehicles by 2025.