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GM partners with POSCO on $400 million factory to produce cathode material for EV batteries

General Motors announced an expansion of its supply chain for its ambitious electric vehicle production plans with a new cathode factory in partnership with POSCO in Quebec, Canada.

Over the last few years, GM announced several upcoming new battery cell factories under its new Ultium Cell partnership with LG Energy.

Those factories are going to require a brand new large-scale supply chain.

The company made several announcements on that front, and in December, GM announced a partnership with POSCO to build a “North American materials processing factory for Ultium EV batteries.”

Today, the two companies confirmed that they are going to build a $400 million cathode factory in Bécancour, Quebec, Canada:

“Today, General Motors Co. (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 facility 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.”

Cathode active material, or CAM, is generally made of nickel, lithium, and other materials representing about 40% of the total cost of a battery cell.

Doug Parks, GM executive vice president, Global Product Development, Purchasing, and Supply Chain, commented on the announcement:

“GM and our supplier partners are creating a new, more secure and more sustainable ecosystem for EVs, built on a foundation of North American resources, technology and manufacturing expertise. Canada is playing an important role in our all-electric future, and we are grateful for the strong support we have received from local, provincial and national officials to grow a North American-focused EV value chain.”

Min Kyung-Zoon, CEO of POSCO Chemical, added:

“POSCO Chemical is set to expand battery material supplying capability across North America through establishing a cathode material plant in Canada. 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.”

Construction on the new plant is expected to start next year and production should start by 2025.

At that time, Ultium Cells will have several battery cell factories up and running and it will need a lot of CAM.

The cells will end up in GM’s many planned upcoming electric vehicles, but it specifically mentioned the Chevrolet Silverado EV, GMC HUMMER EV and Cadillac LYRIQ in the press release.

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