GM, POSCO Chemical establishing a new CAM production facility in Canada
General Motors and POSCO Chemical have announced a $400 million production facility in Bécancour, Quebec to supply cathode active material (CAM) for GM's 'Ultium' batteries in North America.
Back in December 2021, the companies announced their plans to form a CAM processing joint venture, with majority-owned by POSCO Chemical. Construction on the new facility is said to begin immediately and will allow for future expansion opportunities as GM continues to pursue many potential future EV supply chain projects in the region.
"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", he added.
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.
"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 the capacity to build 1 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. "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", he added.