GM battery materials plant in Quebec sees $300 million from government

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General Motors and POSCO Future M will receive about $300 million in financial support from both the Québec and Canadian governments to build an EV-battery materials processing facility in the province, the two companies said late May. Québec Premier François Legault and the federal Minister of Innovation, Science, and Industry, François-Philippe Champagne, both publicly shared their respective administrations’ financial backing for the project.

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The joint venture, named the Ultium CAM facility – for Cathode Active Material (CAM) – is located in Bécancour, Québec, about midway between Montréal and Québec City. Initially announced in March 2022, the project aims to help fulfill General Motors’ rapidly growing battery production needs in North America. The joint venture has committed to investing over CDN$600 million into the facility’s construction, of which $300 million will be supplied, evenly split, between the governments.

The plant is currently under construction, and is projected to begin CAM production in the first half of 2025, providing about 200 direct full-time jobs. To note, CAM is an essential component in EV batteries, constituting approximately 40 per cent of a battery cell’s cost.

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GM has ambitious plans to install one million units of annual electric vehicle (EV) capacity in North America by 2025, with plans to expand further from there. Additionally, GM has previously announced four U.S. battery-cell joint-venture plants, with one already operational, and two currently under construction. The Ultium CAM project will play a significant role in supporting these large-scale plans for the production of electric Chevrolet, Cadillac, GMC, Buick, and BrightDrop vehicles in North America, reflecting the automotive industry’s shift towards sustainable transportation solutions.

Speaking of sustainability, this strategic initiative will benefit from the use of Québec’s low-carbon and renewable hydroelectricity for critical mineral processing. These attributes were instrumental in deciding to situate the plant in Québec.

In backing this initiative, the Québec and federal governments underscore their commitment to fostering innovation and supporting the transition towards green technology. The move further positions Québec, and Canada as a whole, as a leader in the global green tech space, particularly within the electric-vehicle sector.