Canadian Government Invests in GM-POSCO Quebec EV Battery Materials Plant to Expand Supply Chain

General Motors (GM) is set to receive $220 million in government support from both the Canadian federal government and the Quebec province for the establishment of an electric vehicle (EV) battery materials plant in Quebec. Pierre Fitzgibbon, Quebec’s minister of economy, innovation, and energy, expressed his satisfaction, stating that “Quebec’s battery sector is up and running.”

According to the Canadian industry ministry, each government entity will contribute approximately C$150 million ($112 million) towards the project. The battery materials facility, a collaboration between GM and South Korea’s POSCO Chemical, aims to create around 200 jobs in Canada. The companies announced their plan last year to construct the facility in Becancour, Quebec, with the goal of producing cathode active material (CAM) for EV batteries.

The plant is expected to be operational by 2025, and it is being described as a project with a total cost exceeding C$600 million. CAM is a crucial component of EV batteries, accounting for approximately 40% of the battery’s cost. The industry ministry explained that CAM includes processed nickel, lithium, and other materials.

Canada is well-positioned in the mining sector, particularly in minerals like lithium, nickel, and cobalt. The country has been actively attracting companies involved in all aspects of the EV supply chain through a substantial green technology fund. As the world seeks to reduce carbon emissions, Canada aims to capitalize on its resources and become a significant player in the EV industry.

Industry Minister Francois-Philippe Champagne emphasized the significance of the investment in GM-POSCO’s facility in Becancour, stating that it would further solidify Quebec’s position as a key hub in Canada’s growing EV supply chain. The CAM produced at the plant will be used to manufacture GM’s Ultium batteries, which will power their upcoming EV models such as the Chevrolet Silverado EV, GMC HUMMER EV, and Cadillac LYRIQ.