General Motors (GM) and Posco have announced a substantial investment of over US$1 billion in their joint venture, Ultium CAM, to boost the production of cathode active material (CAM) for electric car batteries in North America. The two companies are establishing a new facility to accommodate this expansion, with the specific location set to be revealed at a later date.
The upcoming plant aims to manufacture cathode material and precursors, catering to the production needs of approximately 360,000 vehicles annually. As previously reported, GM and Posco had already initiated the construction of a cathode materials plant in BĆ©cancour, Quebec, in 2022. This facility, with an expected yearly capacity of 30,000 tonnes, will produce cathode materials for GM’s Ultium electric vehicle platform starting from 2025. Recently, the Canadian government pledged 300 million Canadian dollars in support for this project.
Doug Parks, GM’s Executive Vice President of Global Product Development, Purchasing, and Supply Chain, emphasized the significance of expanding CAM production capacity and integrating pCAM into their joint venture. He stated that this step plays a crucial role in establishing a resilient and sustainable supply chain focused on North America, supporting GM’s rapidly growing electric vehicle production. Parks also highlighted the company’s commitment to vertical integration, starting from battery cell production and extending throughout the entire battery supply chain, including raw material recovery. This approach facilitates increased investment and job creation across North America.
Kim Joon-Hyung, President of POSCO Future M, expressed confidence in the joint venture’s position within the expanding North American EV battery materials market. Joon-Hyung believes that the decision to boost CAM production and introduce pCAM production in North America will reinforce the joint venture’s presence in the secondary battery material industry.
Posco has been steadily expanding its production capacity and securing supply contracts in the cathode active materials field. Notable developments include a deal with Samsung SDI announced in February, the acquisition of Tera Technos in July for silicon anode materials, and a partnership with Britishvolt in the previous summer. These strategic moves demonstrate Posco’s commitment to staying at the forefront of the evolving battery materials industry.
