Posco Future M, General Motors up investment in Canada plant

Industry

Published: 02 Jun. 2023, 18:55 Updated: 02 Jun. 2023, 18:58

Posco Future M, General Motors up investment in Canada plant

The construction site of Ultium CAM's cathode plant in Quebec, Canada. Ultium CAM, a joint venture between Posco Future M and General Motors, announced an additional $7 billion investment in the project on Friday. [POSCO FUTURE M]

Posco Future M and General Motors will make an additional $757-million investment in their joint battery material factory under construction in Canada, the companies said Friday.

The latest decision came after the Canadian government announced to offer 300 million Canadian dollars ($223.5 million) in incentives for the companies’ electric vehicle (EV) battery materials plant on May 29.

Ultium CAM, a joint battery materials venture between Posco Future M and General Motors, is currently building a $630 million cathode manufacturing plant with an annual production capacity of 30,000 tons in Becancour, Quebec.

Ultium CAM was established in July last year, with Posco Future M holding 85 percent of the venture and General Motors the remainder.

The ongoing construction of the cathode plant is slated for completion in 2024.

With the additional investments, Ultium CAM plans to expand the manufacturing capacity of cathode materials and add a battery precursor production facility by 2026.

When the expansion is completed, the combined production cathode capacity of the Quebec plant will reach 63,000 tons from the previously announced 30,000 tons.

The battery precursor plant will have an annual capacity of 45,000 tons.

Moreover, Ultium CAM clinched a 13.2-trillion-won ($10.1 billion) contract with Ultium Cells, a 50-50 joint battery venture between LG Energy Solution and General Motors, to supply high-nickel cathode from the added production line for nine years.

Posco Future M previously signed two cathode supply deals with Ultium Cells, a 50-50 joint venture between LG Energy Solution and General Motors, worth a total of 21.8 trillion won.

The company previously announced in April that it inked a 30-trillion-won deal with LG Energy Solution for high-nickel cathodes.

Posco Future M, which was recently renamed from Posco Chemical, aims to boost its cathode capacity to 340,000 tons in 2025 and 610,000 tons in 2030. The company currently has a 90,000-ton facility in Gwangyang, South Jeolla, a 10,000-ton facility in Gumi, North Gyeongsang, and a 5,000-ton facility in China.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]