The Canadian federal government and the Quebec province have committed approximately CAD150m (USD110m) each to support the establishment of a General Motors-POSCO Chemical battery materials facility in Becancour, Quebec, as reported by Reuters on May 29. The facility aims to produce cathode active material (CAM) for electric vehicle (EV) batteries and is projected to generate around 200 job opportunities in Canada. With a budget exceeding CAD600m, the plant is scheduled to commence operations by 2025.
CAM, comprising processed nickel, lithium, and other components, constitutes approximately 40% of a battery’s cost. Canada, known for its abundant mineral resources including lithium, nickel, and cobalt, has been actively attracting companies involved in various aspects of the EV supply chain through a significant green technology fund. This investment in the GM-POSCO facility will strengthen Quebec’s role as a pivotal hub in Canada’s expanding EV supply chain. The CAM produced at the plant will be utilized in the production of GM’s Ultium batteries, which will power their electric vehicle lineup, including the Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ. The investment in the GM-POSCO battery materials facility not only signifies a significant step towards reducing carbon emissions and embracing sustainable transportation but also promises notable economic and technological advancements for Canada. With a strong emphasis on environmental benefits, this venture aligns with the country’s commitment to combating climate change and achieving net-zero emissions by 2050.