In a significant development for electric vehicle (EV) industry, the Canadian government will invest CA$300M into the GM-POSCO battery project. The GM POSCO joint venture is a collaboration by POSCO Future M and General Motors, known as Ultium CAM, in Bécancour, Quebec. It plans to establish a cutting-edge cathode plant, which will generate approximately 200 jobs and will start operating by 2025.
The announcement represents another milestone in the blossoming partnership between POSCO Future M and GM. They initiated their collaboration back in 2020, with a 1.9-trillion-won cathode deal. The partnership has been flourishing since, with two large orders from Ultium Cells, the battery joint venture involving GM.
“Canada has everything it needs to be a global leader in battery manufacturing: access to global markets, a highly talented workforce, clean energy, world-leading innovation and all the critical mineral resources necessary to make batteries. This investment in GM-POSCO’s new facility in Bécancour will help further position Quebec as a key hub in Canada’s growing EV supply chain. This investment is good for the environment and for the economy, and it will ensure well-paying jobs for years to come.”
The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry
Through this partnership, POSCO Future M aims to significantly increase its production capacity and has set ambitious goals. It plans to significantly enhance its cathode capacity, aiming for 340,000 tons by 2025 and 610,000 tons by 2030.
Also read: Canada and US are launching first joint EV charging network
GM-POSCO battery project to power GM electric vehicles
GM’s Ultium batteries will use the cathode active materials (CAM) made in the facility. These batteries will power the company’s EVs, including the Cadillac LYRIQ, GMC HUMMER EV, and Chevrolet Silverado EV.
We at GM Canada are particularly proud to be back in Québec growing investments and jobs in alignment with the province’s vision for the future of transportation.”
Marissa West, General Motors Canada President and Managing Director
The planned cathode facility in Quebec is not the first of its kind for POSCO Future M. In 2022, the firm announced plans to invest in a CA$633 million battery cathode materials plant in Canada, alongside GM. Then in March 2023, POSCO Future M revealed plans to invest CA$300 million to construct a high-nickel cathode plant. That facility will be established in Pohang, South Korea, in response to the increasing demand for high-density batteries.
This flurry of investment activity indicates POSCO Future M’s strategic plan for growth. Secondary battery materials are one of the seven core businesses that the POSCO Group plans to develop to ensure a sustainable future. Other areas of focus for the conglomerate include steel, lithium/nickel, hydrogen, energy, construction/infrastructure, and agri-bio.
POSCO Future M is a prominent South Korean manufacturer specializing in secondary battery materials. It is a key player within the POSCO Group, focusing on producing cutting-edge materials such as high-nickel cathodes. Moreover, it is targeting substantial expansion in response to the growing global demand for advanced battery solutions.
The GM-POSCO battery project announcement comes amidst other major developments in EV battery space in Canada. A few days ago, we wrote about Volkswagen’s announcement about building the largest battery factory in Canada.
Also read: Ontario Centre of Innovation funds battery tech by TROES
