Posco Chemical Launches Cathode Material Joint Venture 'Ultium CAM' with GM

Approximately 460 Billion KRW Joint Investment
Phase 1: Construction of a 30,000t High-Nickel Cathode Material Plant in Canada

Gradual Expansion in Raw Materials, R&D, and Marketing
to Support GM's Electric Vehicle Business Growth

Domestic 60,000t Cathode Material Plant in Gwangyang
Scheduled for Production Line Completion in July

President Min Kyung-jun: "Establishing a Strong Partnership with GM"

POSCO Chemical and GM signed a contract on the 27th to establish the cathode material joint venture Ultium CAM. President Min Kyung-jun (right in the photo) and GM Vice President Doug Parks (top right in the left screen) are commemorating the contract signing.

[Asia Economy Reporter Donghoon Jeong] POSCO Chemical and General Motors (GM) have signed the final agreement to establish Ultium CAM, a North American cathode active materials joint venture.

Ultium CAM is a name combining GM's battery cell company 'Ultium Cells' and cathode active materials.

The two companies will invest $327 million (approximately 460 billion KRW) in capital to build a high-nickel cathode active materials joint factory with an annual production capacity of 30,000 tons in Becancour, Quebec, Canada, capable of supplying about 220,000 electric vehicles in the first phase. The production plant will begin construction in August this year and be completed in the second half of 2024, with plans to gradually expand in line with GM's electric vehicle business growth.

With this joint venture, POSCO Chemical will expand cooperation by additionally supplying cathode active materials to GM's battery company Ultium Cells locally in North America. POSCO Chemical was selected as a cathode active materials supplier to Ultium Cells in December 2020. To ensure stable supply, it is also expanding a production line with an annual capacity of 60,000 tons in Gwangyang, Korea, scheduled for completion in July.

The contract signing ceremony held via video conference was attended by Kyungjun Min, President of POSCO Chemical, and Doug Parks, GM Vice President of Global Product Development and Purchasing, who signed on behalf of both companies.

Through this, the two companies have created the first strategic cooperation model between an automaker and a battery materials company, establishing a core battery materials supply chain in North America where the electric vehicle industry is rapidly growing, securing market leadership. Cathode active materials account for about 40% of battery costs and are the most important material to strengthen competitiveness in the electric vehicle industry.

The two companies expect to increase their influence in the global electric vehicle market by expanding cooperation across raw materials, research and development, and marketing centered on the joint venture.

Meanwhile, POSCO Chemical will also establish a holding company, 'POSCO Chemical Canada,' for this North American investment. With the establishment of this joint venture, POSCO Chemical will produce cathode active materials not only in Korea and China but also in North America, and plans to expand into Europe and Indonesia to build global mass production bases focused on major electric vehicle markets.

POSCO Chemical plans to increase its cathode active materials production capacity from 105,000 tons in 2022 to 345,000 tons in 2025 and 610,000 tons in 2030. Anode materials production capacity will expand from 84,000 tons in 2022 to 170,000 tons in 2025 and 320,000 tons in 2030.

Kyungjun Min, President of POSCO Chemical, said, "Based on our unique technology and close cooperation between the two companies, we will produce the highest quality battery materials and enhance our customers' competitiveness," adding, "We will build an even stronger partnership with GM to lead the transition to the electric vehicle era in North America."

Doug Parks, GM Vice President of Global Product Development and Purchasing, said, "Through the joint venture Ultium CAM with POSCO Chemical, we will rapidly expand our electric vehicle business and build a sustainable materials supply chain centered in North America."

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