GM, POSCO to build EV batteries plant in Quebec

DETROIT—General Motors and POSCO Chemical have announced they are working with the governments of Canada and Quebec to build a new $500-million automotive batteries facility in Becancour, Que.

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, stated a recent release.

The companies had announced plans to form a CAM processing joint venture in December 2021, majority owned by POSCO Chemical. Construction of 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 stated it continues to pursue potential future EV supply chain projects.

CAM is a battery material consisting of components such as processed nickel and lithium representing about 40 per cent of the cost of a battery cell.  

GM has announced a series of initiatives to create a more secure North American EV supply chain, including projects targeting key EV materials and components such as lithium, alloy flakes and permanent magnets. By the end of 2025, GM plans to have capacity to build one million electric vehicles in North America.

“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, a GM executive vice-president, in a statement. “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.”