General Motors (GM) and POSCO Chemical have put expansion plans for a battery material factory in Bécancour, Canada, on hold indefinitely. According to the Quebec Ministry of Economy, this affects the second phase of the Ultium CAM project, which involves producing cathode materials for GMʼs electric batteries. The companies cited the current market situation as the reason for its decision.
Consequences for other playersʼ factory planning
The plant, the first phase of construction of which is currently underway, is scheduled to go into operation in 2026. Initially, construction for the second phase was set to begin immediately afterwards. This phase included the production of nickel sulfate and other components for cathode materials. Consequently, Vale Base Metals has halted its plans for a nickel sulfate plant that was to supply Ultium CAM. The company announced that GM does not currently need nickel sulfate from Quebec.
Ministry of Economy sticks to its course
The delay is attributed to a global slowdown in demand in the battery industry. Despite this setback, Quebecʼs Minister of Economy, Christine Fréchette, emphasized the provinceʼs continued commitment to the battery sector. Previously, the federal and provincial governments contributed close to 214 million US dollars to the first phase of the Ultium CAM project, including a partially repayable loan of just over 108 million US dollars.
Source:
https://www.cbc.ca/news/canada/montreal/becancour-gm-posco-ev-battery-project-paused-9.6941007
