General Motors (GM) and South Korean partner Posco Future M have halted plans for the second phase of their cathode material facility in Bécancour, citing a slowdown in electric vehicle (EV) demand and shifting political priorities across North America.
The Ultium CAM joint venture plant remains on track to begin producing cathode materials for GM’s Ultium Cells battery plants next year. However, the planned expansion — which would have added new facilities for precursor materials — will not proceed as scheduled. “In light of evolving market dynamics, GM and our partners will pause the second phase of the project,” said Marie Binette, spokesperson for GM Canada.
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GM and Posco first announced their joint venture in December 2021, selecting Bécancour as the site for a facility with an annual capacity of 30,000 tonnes to support GM’s EV production. Construction of Phase 1 continues despite earlier delays, with operations expected to begin in 2025.
Québec’s Minister of Economy Christine Fréchette said she remains confident in the completion of the first phase, expressing hope that “the pause will be of a limited duration” and that the project could resume when market conditions improve.
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The suspension also affects related supply chain projects. Vale, which had planned a nickel sulphate plant in Bécancour to supply GM with 25,000 tonnes annually, confirmed that GM has no immediate need for the material and has terminated its supply deal. The Brazilian miner said it would cancel its planned facility as a result.
The decision comes as GM revises its broader EV strategy, taking $1.6 billion in write-downs linked to scaled-back electric vehicle plans and contract cancellations, including the Vale agreement.
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Once envisioned as a cornerstone of North America’s EV materials hub, Bécancour has seen multiple projects stalled. BASF and Ford’s partnership with SK On and EcoPro BM have both paused construction of similar facilities, citing weak demand and uncertain market conditions.
Despite these setbacks, provincial officials maintain optimism that the city’s strategic location and industrial infrastructure will support future investment once EV market momentum strengthens.
Source: yahoo.com, bloomberg.com, cbc.ca
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