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 percent 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. © Reuters