What’s Happening
General Motors (GM) and POSCO Future M have received financial support from Québec Premier François Legault and the federal Minister of Innovation, Science and Industry, François-Philippe Champagne. This support will aid in the development of a Cathode Active Material (CAM) processing facility, Ultium CAM. Located in Bécancour, Québec, the Ultium CAM facility is a result of a joint venture between GM and POSCO Future M.
Why It Matters
The development of this CAM processing facility aligns with GM’s ambition to boost its battery production in North America. Initiated in March 2022, the project was aimed at supporting the rapidly expanding battery production of General Motors. The joint venture has invested more than C$600 million in the project, which is currently under construction and expected to begin CAM production by 2025.
Key Points
This project brings about significant economic impact, creating approximately 200 direct full-time jobs. Bécancour’s ideal industrial site, access to Québec’s low carbon hydro-electricity, and government support were instrumental in the selection of the Québec location.
CAM plays a vital role in battery production, contributing to about 40% of the cost of a battery cell. GM has a clear vision of installing 1 million units of annual EV capacity in North America by 2025 and to continuously expand from there.
GM has already established four U.S. battery cell joint venture plants, with one operational and two under construction. The Ultium CAM joint venture will facilitate the production of electric vehicles including Chevrolet, Cadillac, GMC, Buick and BrightDrop models in North America.
Bottom Line
This new CAM processing facility in Québec underscores the increasing importance of sustainable and cost-efficient electric vehicle supply chains. Leaders from GM Canada and GM’s executive director for EV Raw Materials’ Center of Excellence have commended the support of the Québec government, acknowledging that the investment supports GM’s ambitious EV production targets. Furthermore, the Ultium CAM JV President noted that local construction and engineering partners have kept the project on track.
Québec’s Premier, the Minister of Innovation, Science and Industry, and Québec’s Minister of Economy, Innovation and Energy all expressed their support for the project, noting its importance for Québec’s role in the global green economy, the future of battery manufacturing, and the creation of well-paying jobs.
This significant milestone exemplifies GM’s dedication to building a secure EV supply chain, playing an important role in the green energy transition and contributing to the reduction of GHG emissions globally.
