General Motors Co and Posco Future M Co Ltd have successfully secured half of the funding required for their ambitious electric-vehicle battery component plant in Quebec, thanks to financial support from provincial and federal governments.
The project, which entails the creation of a cathode material factory called Ultium Cam, was initially announced by the US and South Korean companies in March 2022.
The Canadian and Quebec governments will each contribute roughly $150 million to the project, which is projected to generate around 200 job opportunities.
The Quebec government recently stated, "This production will be used to manufacture batteries for GM's Ultium program, which aims to produce one million electric vehicles a year by 2025."
General Motors has pledged a substantial $35 billion investment in electric and autonomous vehicles between 2020 and 2025.
Cathodes, which for approximately 40% of battery cell costs, are a crucial component in electric vehicle batteries, according to the car manufacturer.
Canada’s federal government has faced mounting pressure after the suspension of Stellantis NV (NYSE:STLA, EPA:STLA) and LG Energy Solution Ltd's $5 billion battery plant construction in Windsor, Ontario two weeks ago amid calls for more public money.
Now, Becancour, a small town with a population of approximately 14,000, is poised to become Quebec's focal point for electric-vehicle battery component production in the coming years. Notably, Germany's BASF SE and Brazilian miner Vale SA have committed to investing in the region.
The plant is expected to commence operations within the next two years.
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