2 major electric vehicle battery supply chain projects fall through in Bécancour, Que.
Global slowdown in EV battery industry affecting Quebec, economy minister says
The expansion of a major electric vehicle battery project in Bécancour, Que., is being indefinitely paused, while a nickel sulfate plant meant to supply it has been cancelled.
In March 2022, General Motors and South Korea's POSCO Chemical announced a partnership, known as Ultium Cam, to build a plant in Quebec producing cathode active materials for GM's Ultium batteries.
But now, Quebec Economy Minister Christine Fréchette, who was in Mirabel, Que., Thursday for an unrelated announcement, confirmed that the second phase of the project was not going ahead.
"My hope is that this pause will be of a limited duration, and that in the near future we'll be able to relaunch the project," she said.
The first phase of the project is under construction, with a $600-million facility in Bécancour expected to start production in 2026.
"I am confident that Phase 1 will move forward," Fréchette said, noting it's already underway.
Phase 2, meanwhile, focused on increasing production with construction of a plant to manufacture the main ingredient for cathode active materials — a mixture of nickel sulfate and other elements.
As a result of the pause, Vale Base Metals scrapped its own plans for a nickel sulfate plant that would have supplied Ultium Cam.
In a statement to The Canadian Press, Vale Base Metals said GM "will not need nickel sulfate in Quebec at this time."
Fréchette blamed the current situation on a global slowdown affecting the EV battery industry.
She said, however, that the sector remains promising and one in which Quebec was positioning itself and pointed to other battery projects in Bécancour that are moving forward.
The news comes less than two months after Quebec closed the chapter on Northvolt and the province's controversial plans to build a $7-billion EV plant outside of Montreal, losing a $270-million investment in the process.
The federal and provincial governments have together funded about $300 million of the first phase of the Ultium CAM project, including a $152-million, partly forgivable loan from Quebec.
Earlier this week, GM reported it will record a negative impact of $1.6 billion US in its next quarter after tax incentives for electric vehicles were slashed by the U.S. and rules governing emissions are relaxed.
Written by Annabelle Olivier, with files from Radio-Canada and The Canadian Press
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