Canada invests CAN$300 million in GM-POSCO Chemicals battery materials plant
Canada will invest CAN$300 million in a plant being set up by General Motors and POSCO Chemicals to manufacture battery materials, the country announced.
America's GM and South Korea's POSCO plan to produce cathode active material for electric vehicle (EV) batteries through a joint venture named Ultium CAM, in Becancour, Quebec, at an investment of CAN$600 million. The companies expect to have the plant running by 2025.
Cha Chi-gyu, President of Ultium CAM, confirmed the timeline and told reporters "We will soon begin our hiring and training of permanent employees for our operations."
CAM are key battery materials consisting of components such as processed nickel, lithium and other materials. Together, they account for about 40 percent of the cost of a battery. In turn, battery packs account for about 40-50 percent of the cost of an electric vehicle.
Canada has been seeking large anchor investments in the battery material processing and cell manufacturing space since 2022, as part of an attempt to shift to a net-zero economy while adding skilled jobs. The country is already home to multiple battery plants belonging to PowerCo, which spearheads batteries for the Volkswagen group, and has also attracted investments in green hydrogen.
In December 2022, the country released a Critical Minerals Strategy to help advance the development of critical mineral resources and value chains across the nation while promoting climate action and environmental protection.