The JV called Ultium CAM will build a production plant in Bécancour, Quebec with a capacity of 30,000 tons of cathode material per annum
POSCO Chemical and GM sign JV agreement for Ultium CAM. (Credit: POSCO CHEMICAL)
POSCO Chemical and General Motors (GM) have finalised their previously announced cathode material joint venture (JV) in Canada, which will see a combined investment of $327m.
Majority-owned by POSCO Chemical, the JV has been named Ultium CAM. The South Korean firm will hold a stake of 85%, while GM will own the remaining 15% stake in the JV.
The partners announced their plans to form the JV to produce cathode active materials (CAM), which is a key component in electric vehicle batteries.
Ultium CAM will construct a production plant in Bécancour, Quebec with a capacity of 30,000 tons of cathode material per year.
POSCO Chemical said that the plant will break ground in August 2022. The construction is expected to be wrapped up in the second half of 2024.
Ultium CAM is planned to produce thousands of tons of material annually, which will mainly go to GM’s Ultium Cells plants in the US.
GM global product development, purchasing and supply chain executive vice president Doug Parks said: “The Ultium CAM JV with POSCO Chemical supports GM’s rapid scaling of EV production, as we build a more sustainable and more North America-focused supply chain.”
In late 2020, GM selected POSCO Chemical as a supplier of cathode active materials for Ultium Cells. The South Korean firm said that for coping with stable orders, it plans to install a production line in Gwangyang, South Korea, which will have a production capacity of 60,000 tons per year.
POSCO Chemical will also set up a holding company called POSCO Chemical Canada for investment in North America.
POSCO Chemical president Min Kyung-zoon said: “We will produce the highest quality battery materials and enhance customer competitiveness based on world-class technology and close cooperation between the two companies. We will lead the transition of electric vehicle era in North America by establishing a stronger partnership with GM.”
Last month, GM and Honda revealed plans to co-develop a series of electric vehicles that are expected to be launched in North America, starting in 2027.