EV Battery Gold Rush – GM, POSCO Chemical JV Expansion

Construction begins immediately.

In the latest confirmation that the complicated electric vehicle transformation of the global auto business will be ruled by companies that figure out how to inexpensively make batteries, today General Motors (NYSE: GM) and POSCO Chemical* announced that they are working with the governments of Canada and Quebec to build a new facility in Bécancour, Quebec, estimated at $400 million (C$500 million).

The new plant will produce cathode active material (CAM) for GM’s Ultium batteries, which will power electric vehicles such as the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ. AutoInformed readers might remember that the companies previously announced plans to form a CAM processing joint venture in December 2021, majority owned by POSCO Chemical.

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Construction on the new facility, which the joint venture will operate, will begin immediately and will create approximately 200 jobs, GM said in a release. The site’s construction will allow for future expansion opportunities as GM continues to pursue many potential future EV supply chain projects.

“POSCO Chemical is set to expand battery material supplying capability across North America through establishing a cathode material plant in Canada,” said Min Kyung-Zoon, CEO of POSCO Chemical. “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.”

By the end of 2025, GM plans to have capacity to build 1 million electric vehicles in North America, and the company targets the majority of components by value to be sustainably sourced, processed or manufactured in North America.

*POSCO Chemical is a global advanced materials company. It is producing high-capacity Ni-rich cathode materials and low-expansion anode materials for EV batteries and has a set of technologies such as NCMA cathode, silicon anode and materials for solid-state battery. POSCO, the parent company of POSCO Chemical, is a global steel maker. POSCO Group is building a “value chain across battery business from raw materials to battery recycling.”