SK On-Ford-Ecopro BM to Build Anode Material Plant in Canada... 1.2 Trillion Won Investment (Comprehensive)

Starting Operation in 2026... Annual Production of 45,000 Tons
Establishing 'Cathode Material-Battery-Electric Vehicle' Value Chain

Sung Min-seok, CCO (Chief Commercial Officer) of SK On, is giving a speech at the announcement event for the establishment of the SK On-Ford-Ecopro BM cathode material joint factory held on the 17th (local time) at a hotel in Valcartier, Quebec, Canada. Photo by SK On

SK On, automaker Ford, and cathode material producer EcoPro BM are establishing a battery cathode material plant in Canada.

On the 17th (local time), SK On, Ford, and EcoPro BM officially announced the construction of a cathode material plant in Becancour City, Quebec, Canada. The announcement ceremony was attended by about 150 people, including Sung Min-seok, SK On CCO (Chief Commercial Officer), Lisa Drake, Ford Vice President of EV Industrialization, Joo Jae-hwan, CEO of EcoPro BM, Fran?ois-Philippe Champagne, Canadian Minister of Innovation, Science and Economic Development, Fran?ois Legault, Premier of Quebec, and Im Woong-soon, South Korean Ambassador to Canada.

1.2 trillion KRW investment to produce 45,000 tons of cathode material annually... enough for 225,000 electric vehicles

The three companies will invest a total of 1.2 billion Canadian dollars (approximately 1.2 trillion KRW) to build a joint plant on a 278,000 square meter site within the Becancour industrial complex.

The joint plant will produce 45,000 tons of cathode material annually, enough for 225,000 electric vehicles. The target is to start operations in the first half of 2026. EcoPro BM’s local subsidiary, EcoPro CAM Canada, established in February, will operate the plant, while SK On and Ford will invest as shareholders. The Canadian federal government and the Quebec provincial government have pledged financial support totaling 644 million Canadian dollars (approximately 640 billion KRW). In other words, the Canadian government will subsidize more than half of the investment amount (1.2 trillion KRW).

The Canadian federal government will provide a conditional loan of 322 million Canadian dollars (approximately 431.4 billion KRW) to the consortium of the three companies, and the Quebec provincial government will offer a similar loan with partial forgiveness conditions. The expected employment is 345 people. EcoPro BM is establishing its second overseas production base in Canada after Hungary. Last December, EcoPro BM announced it would invest 970 billion KRW to build a cathode material plant in Debrecen, Hungary.

On the 17th (local time), representatives from SK On, Ford, and EcoPro BM, along with Canadian government officials, are taking a commemorative photo at the site of the anode material factory construction within the Becancour Industrial Park in Quebec, Canada. Photo by EcoPro BM

After signing a letter of intent (LOI) for cathode material production facility investment in July last year, the three companies have been discussing various matters for the plant construction. They aim to build a value chain in North America that connects materials (cathode materials), components (batteries), and finished products (electric vehicles), securing stable supply and price competitiveness of key battery materials.

EcoPro BM already supplies cathode materials for SK On’s batteries with nickel content exceeding 90%, known as NCM9 (Nickel-Cobalt-Manganese). These batteries are used in Ford’s electric pickup truck, the F-150 Lightning. Currently, cathode materials are produced in Korea and exported, but going forward, cathode materials produced in Canada will be supplied.

SK On currently operates two battery plants in North America and plans to add four more through joint ventures with automaker partners. Once completed, SK On’s annual battery production capacity in North America will exceed 180 GWh, enough to supply batteries for more than 1.7 million electric vehicles.

Sung Min-seok, SK On CCO, said, "Through the joint plant, we have established a stable supply chain for key battery materials in North America," adding, "The three companies will continue to strengthen their partnership to lead the electrification of the global automotive market." Bev Goodman, Ford Canada CEO, said, "We are pleased to create a vertically integrated battery supply chain in North America," and added, "We hope this plant will make electric vehicles more accessible to many people in the future."

Joo Jae-hwan, CEO of EcoPro BM, stated, "By building a plant in Canada following Hungary, we have the opportunity to become a truly global advanced cathode material company," and added, "We will contribute to the Canadian and Quebec communities and the local economy through local hiring and other efforts."

Why Korean batteries head to Canada despite the US IRA

Canada is a free trade agreement (FTA) partner with the United States, making it easier to respond to the US Inflation Reduction Act (IRA). It meets the IRA’s critical mineral subsidy requirements. Cathode materials produced here and used in electric vehicles can qualify for subsidies of up to $7,500 (approximately 10.05 million KRW) per vehicle.

Canada is attracting electric vehicle and battery manufacturers by offering substantial subsidies. This strategy follows the US, which aims to attract the future mobility industry domestically. Since the enactment of the IRA and the CHIPS and Science Act (CSA), the US has attracted at least $224 billion (approximately 300.5 trillion KRW) in related investments. Companies have pledged to create over 100,000 jobs through these investments.

Aerial view of the Canadian cathode material factory. Photo by EcoPro BM

The US IRA supports about one-third of battery plant construction costs and provides subsidies of $45 per kWh for battery module production. Canada offers subsidies at levels similar to the US IRA.

The Canadian government has committed approximately 300 million Canadian dollars (about 296.7 billion KRW) to support POSCO Future M’s joint cathode material plant with GM. LG Energy Solution and Stellantis’ joint venture will receive up to 15 billion Canadian dollars (about 14.7 trillion KRW) in subsidies over ten years. Mark Stewart, Stellantis North America COO, stated, "The US IRA has completely transformed the battery production environment in North America, and without comparable support, competitive battery production in Canada would be difficult."

As a resource-rich country, Canada also has advantages in securing key battery raw materials such as lithium and nickel. As of 2020, Canada’s lithium reserves were 15.16 million tons in lithium carbonate equivalent (LCE), with economically minable reserves estimated at 2.8 million tons (according to Korea Trade-Investment Promotion Agency data). Lithium reserves are expected to increase as exploration continues. Canada also has abundant nickel, a critical raw material needed for improving driving range and output. Along with Indonesia and Australia, Canada accounts for 48% of global nickel production.

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