Posco Chemical to Build Cathode Material Plant in Canada with GM

$400 Million Investment in Quebec Starting Next Year
42,000 Tons of Cathode Material Production Capacity by 2030

[Image source=Yonhap News]

[Asia Economy Reporter Oh Hyung-gil] POSCO Chemical is establishing a cathode material joint venture factory with General Motors (GM) in the United States and Quebec, Canada, aiming to make it an advanced base for building a core battery material supply chain in North America.

The two companies will invest approximately $400 million (KRW 492.2 billion) in the first phase starting next year to build a factory in Becancour, Quebec, Canada, and produce high-nickel cathode materials for electric vehicle batteries. Becancour boasts advantages such as a raw material supply chain adjacent to mines, logistics facilities, low investment costs, industrial infrastructure and technology, and abundant hydro renewable energy.

Based on the competitiveness of the Quebec cathode material factory, POSCO Chemical plans to establish a core battery material supply chain in North America, where the electric vehicle market is rapidly growing, and accelerate its global market expansion.

According to market research firm IHS, the North American electric vehicle battery market is expected to grow at an average annual rate of 58%, from 46 GWh in 2021 to 143 GWh in 2023 and 286 GWh in 2025. Cathode materials account for 40% of battery costs and are key materials encouraged for regional production due to tariff policies in North America.

GM plans to establish an electric vehicle production system of 1 million units annually in North America and over 2 million units globally by 2025. Through Ultium Cells, a joint venture with LG Energy Solution, GM is building four battery factories in North America. This year, GM plans to operate an electric vehicle factory in Ingersoll, Ontario, Canada, and is expanding its electric vehicle business by announcing the launch of 10 electric vehicle models in Korea.

POSCO Chemical expects its partnership with GM to expand through the establishment of the North American cathode material joint venture. As GM expands its electric vehicle business, cooperation with POSCO Chemical, which has raw material competitiveness in lithium, nickel, graphite, and global mass production capabilities, is expected to become stronger.

POSCO Chemical plans to establish cathode material production bases in Korea, North America, China, and Europe, increasing its annual cathode material production capacity from 105,000 tons this year to 280,000 tons by 2025 and 420,000 tons by 2030.

Min Kyung-jun, CEO of POSCO Chemical, said, "With the establishment of the joint factory in Canada, we will build a battery material supply chain in North America and actively pursue market expansion. We will strengthen our partnership with GM and build a production plant with world-class technological competitiveness to lead the transition to the electric vehicle era."

This content was produced with the assistance of AI translation services.