POSCO Future M Co., a major South Korean manufacturer of secondary battery materials, said Tuesday its joint venture with General Motors Co. has secured C$300 million (US$221 million) in funding from the Canadian government for their envisioned cathode plant in Quebec.
Canadian Industry Minister Francois-Philippe Champagne made the announcement Monday (Canada time) during a visit to the construction site in Becancour, where Quebec Premier Francois Legault and other officials were also present, according to POSCO Future M.
POSCO Future M and GM's joint venture, Ultium CAM, is building what will be their first cathode manufacturing facility in Canada in a project valued at US$633 million. The factory aims to be completed in the second half of 2024.
The Canadian federal government and the government of Quebec will invest $150 million each, an industry source with knowledge of the matter said.
Cathodes are a key component consisting of nickel, lithium and other materials used to make electric vehicle (EV) batteries. Cathodes determine the power of EV batteries and make up about 40 percent of the cost of a battery.
POSCO Future M, formerly POSCO Chemical, formed the joint venture with GM in July 2022 to build a cathode plant capable of producing 30,000 tons a year.
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.
Source: Yonhap News Agency