Ultium CAM to receive $221 million in incentives from Canadian government

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Ultium CAM to receive $221 million in incentives from Canadian government

Canadian Industry Minister François-Philippe Champagne announces incentives at Posco Future M-General Motors' cathode plant in Quebec on Monday. [POSCO FUTURE M]

Canadian Industry Minister François-Philippe Champagne announces incentives at Posco Future M-General Motors' cathode plant in Quebec on Monday. [POSCO FUTURE M]

 
Ultium CAM, a joint battery materials venture between Posco Future M and General Motors, will receive 300 million Canadian dollars ($221 million) in incentives from the Canadian government for its electric vehicle (EV) battery materials plant in Quebec. 

 
Posco Future M said Tuesday that Canada's federal government and the Quebec provincial government announced the incentive plan Monday during government officials' visit to the under-construction cathode plant. 
 
The Canadian federal government will offer 147 million Canadian dollars, while the province of Quebec will provide 152 million Canadian dollars. 
 
That is about 50 percent of the total investment Ultium CAM planned for the factory. 
 
Ultium CAM is currently building a $630 million cathode manufacturing plant in Becancour, Quebec. Posco Future M holds 85 percent of the venture while General Motors the remainder. 
 
Cathodes are one of four core materials in lithium-ion batteries, which power EVs. Made of lithium, nickel, cobalt and manganese, cathode materials account for 40 percent of the production cost of an electric battery. 
 
The plant will have an annual capacity of 30,000 tons and is slated to complete construction in the second half of 2024. It will create around 200 jobs in the country. 
 
The produced cathodes will be used to make General Motors' EVs such as the Chevrolet Silverado EV, GMC Hummer EV and Cadillac Lyriq.  
 
The financial support will help Ultium CAM accelerate its efforts to build stable supply chains of key battery materials in North America, further solidifying its presence in the region, Posco Future M said.
 
“This investment in Posco-GM's new facility in Becancour will help further position Quebec as a key hub in Canada’s growing EV supply chain,” said Canadian Industry Minister François-Philippe Champagne.
 

BY SARAH CHEA [chea.sarah@joongang.co.kr]
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