General Motors Co. and POSCO Chemical will build a new facility in Bécancour, Quebec. The $400 million (US) project is expected to create roughly 200 jobs.
The location will produce cathode active material for GM’s Ultium batteries, which will power electric vehicles such as the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ. Construction on the new facility will begin immediately and will allow for future expansion opportunities as GM continues to pursue many potential future EV supply chain endeavors.
“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 companies previously announced plans to form a CAM processing joint venture, majority owned by POSCO Chemical. The 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.
“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 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.