GM, POSCO to build cathode material plant in Quebec

General Motors and POSCO will build a cathode active material, or CAM, processing facility in Becancour, Quebec, to supply the production of electric vehicle batteries in North America, the companies said March 7.

"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," Doug Parks, executive vice president of global product development, purchasing and supply chain, said 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."

Automaker GM and chemicals producer POSCO first announced plans in 2021 for a CAM joint venture in Canada. With Quebec now selected as the location of the facility, construction will begin immediately, with production expected to begin in 2025.

"We will lead the successful transition to the EV era by further strengthening the strategic partnership with GM and securing a production line with world-class technological competitiveness," POSCO CEO Min Kyung-Zoon said in a statement.

The governments of Canada and Quebec will support the development of the $400 CAM plant in Quebec.

François-Philippe Champagne, Canada's minister of innovation, science and industry, said the CAM facility represents a significant milestone for Quebec's ambition of playing a major role in electrification and automotive supply chains.

"Starting from this announcement, Quebec will be integrated in the supply chain for cars in North America, and that's a major shift," Champagne said during a press conference March 7, adding that most of Canada's automotive-related production is currently concentrated in Ontario.

Champagne said officials were now working to further build a complete "mining to recycle" battery supply chain in Quebec, with plans to next add battery manufacturing capacity in the region.

German-based BASF said March 4 it would also build a CAM production and recycling facility in Becancour by 2025.

Role of CAM in GM supply

GM Canada President and Managing Director Scott Bell said the addition of CAM production will play a key role in the company's EV supply chain, as the materials represent about 40% of the cost of each EV battery cell.

"That supply chain begins with the mining of key materials, in this case nickel, which Canada has an abundance of, and those raw materials are then processed to make precursor," Bell said during the press conference. "At Becancour, we will process that precursor into CAM, which in turn will supply the four Ultium cell battery plants that we have partnered with LG Chem and are currently building in the US."

Bell said GM plans to have the capacity to produce 1 million EVs annually by 2025. By 2035, the automaker aims to shift its entire light-duty vehicle lineup to battery electric platforms, he added.

GM said it is targeting a full buildout of its EV supply chain with the "majority of components by value to be sustainably sourced, processed or manufactured in North America," according to the statement.

The US-based automaker had previously announced joint agreements with third parties to develop its other domestic EV supply chains for lithium, rare earth materials, alloy flakes and permanent magnets.