Tuesday, March 08, 2022


GM ramps up EV push with plans to make battery materials in Canada


By Steve Scherer and Aishwarya Nair
© Reuters/Rebecca Cook FILE PHOTO: FILE PHOTO:
 Logo of GM atop the company headquarters

(Reuters) -General Motors Co and South Korea's POSCO Chemical will build a $400 million facility to produce battery materials in Canada as the carmaker ramps up plans to produce mainly electric vehicles (EVs) in the future, the companies said on Monday.

The plant will produce cathode active material (CAM) for vehicle batteries in Becancour, Quebec. Cathodes are the most complex and costly chemical component of an electric vehicle battery.

The cathode "represents about 40% of the cost of every EV battery cell," said Scott Bell, GM Canada's President and Managing Director, in a news conference. "We plan to have capacity by 2025 to build a million EVs in North America."

The plant's construction will begin immediately and the goal is to have it running by 2025. Once completed, it will create an estimated 200 jobs, according to a statement. GM aims to produce light vehicles that run exclusively on electricity by 2035.

The CAM produced at the plant will be used to make GM's Ultium batteries that will power the company's EVs, such as the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ. GM's Ingersoll, Ontario, factory will launch EV production later this year, Bell said.

Both Canada's federal government and Quebec's provincial government are working with GM and POSCO Chemical, the companies said, though details were not released.

Rich in key materials for EV battery production - including lithium, graphite, cobalt and nickel - Canada has been wooing battery makers to safeguard the future of its car manufacturing industry as the world seeks to cut emissions.

It is the second CAM plant announcement for Becancour in less than a week. On Friday, BASF SE said it was planning one there, too.

Canada's Industry Minister Francois-Philippe Champagne said that Becancour will become a hub for the country's EV battery "ecosystem". More "good news" is on the way, Champagne said, adding that there were "very live discussions" under way about building a battery factory in Canada.

"Starting from this announcement, we will be integrated in the global supply chain for cars in North America," Champagne said.

(Reporting by Aishwarya Nair in Bengaluru and Steve Scherer in Ottawa; Editing by Shinjini Ganguli and Aurora Ellis)

GM and POSCO to build plant in Quebec to produce battery material

Quebec was chosen for facility because of several

advantages, says GM representative

David Paterson, vice-president of corporate affairs for GM Canada, says environmental standards, great logistics links and a well-educated workforce are some 'reasons why we chose Quebec.' (CBC)

General Motors Co. and South Korea's POSCO Chemical have announced a deal to build a plant in Quebec to produce material for batteries to be used in electric vehicles (EV).

The companies say the new facility in Bécancour, Que., will cost $400 million US. Bécancour is just south of Trois-Rivières, Que.

It will produce cathode active materials (CAM) for GM's Ultium batteries. 

"It is so exciting to see GM Canada and Quebec playing a key role in building the emerging 'mines to mobility' EV battery ecosystem in North America,'' Scott Bell, president and managing director of GM Canada, said in a news release.

CAM consists of processed nickel, lithium and other materials, and will ultimately help power electric vehicles such as the Chevrolet Silverado EV and GMC Hummer EV.

CAM represents almost 40 per cent of the cost of every EV battery.

Site preparation and construction are scheduled to begin immediately and will create around 200 jobs.

This announcement comes after GM and POSCO agreed to form a CAM-processing joint venture in December and build a factory in North America.

The companies also say the site will be built to allow for future expansion. In November, POSCO announced plans to acquire a 15 per cent stake in Chinese EV battery material producer Inner Mongolia Sinuo New Material Technology Co.

Quebec was chosen for this facility because of several advantages, according to David Paterson, vice-president of corporate and environmental affairs at GM Canada.

"Quebec's low greenhouse gas (GHG), low-cost electricity is really important,'' he said in an interview.

"In addition to its environmental standards, great logistics links and a well-educated workforce are some of the other reasons why we chose Quebec.''

GM is also gearing up to launch Canada's first full electric vehicle manufacturing plant in Ingersoll, Ont., later this year.

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