The federal government of Canada and the province of Quebec have jointly announced a substantial investment of approximately C$150 million each, totaling C$300 million, in the General Motors-POSCO Chemical battery materials facility. This strategic initiative is expected to create around 200 job opportunities within the country. The Canadian industry ministry revealed this news on Monday, underscoring the government’s commitment to supporting the development of the electric vehicle (EV) industry.
General Motors, a prominent U.S. carmaker, and South Korea’s POSCO had previously outlined their collaborative plan to construct the facility in Becancour, Quebec. The primary objective of this facility is to manufacture cathode active material (CAM) used in EV batteries. With an estimated project cost exceeding C$600 million, the companies aim to have the plant operational by 2025.
CAM plays a critical role in EV battery production as it encompasses processed nickel, lithium, and other vital materials that contribute to approximately 40% of the battery’s overall cost. The Canadian industry ministry emphasized the significance of this venture, as Canada possesses a substantial mining sector responsible for producing minerals like lithium, nickel, and cobalt. The nation has been actively seeking to attract companies involved in all aspects of the EV supply chain, aided by a multi-billion-dollar green technology fund, as part of global efforts to reduce carbon emissions.
Industry Minister Francois-Philippe Champagne expressed his optimism regarding the investment, stating, “This investment in GM-POSCO’s new facility in Becancour will help further position Quebec as a key hub in Canada’s growing EV supply chain.” The move aligns with the government’s broader vision of establishing Quebec as a prominent player in the burgeoning EV market.
The CAM produced at the facility will be utilized in the production of GM’s advanced Ultium batteries, which will power the company’s lineup of electric vehicles. Notable models that will benefit from these batteries include the Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ.
With this substantial investment and collaboration between international corporations, Canada’s EV supply chain is set to receive a significant boost. The establishment of the General Motors-POSCO Chemical battery materials facility in Becancour, Quebec, demonstrates the country’s dedication to becoming a leader in sustainable transportation and fostering economic growth through clean technology.
