U.S. carmaker General Motors and South Korean steelmaker POSCO will build a factory in Quebec to produce cathode active material, to be used in GM's Ultium batteries for electric vehicles.
The C$500 million factory will be based in Becancour. Construction on the facility will begin immediately. GM and POSCO are working with the governments of Canada and Quebec in constructing the facility.
The factory will be owned by the joint venture of the two companies, with POSCO holding the majority share.
At the factory, workers will process CAM, which has components including processed nickel, lithium and other materials.
"With this new processing facility in Becancour, GM will help lead the EV battery supply chain while also launching Canada's first full EV manufacturing plant in Ingersoll, Ontario later this year," Scott Bell, chief executive of GM Canada, said.
GM will source materials for the battery from several mines in the U.S. It will secure lithium from Controlled Thermal Resources' Hell's Kitchen project in California.
It will also source alloy flakes from MP Materials, which has plans to create North America's first processing site for the material.
GM and POSCO announced the joint venture in December. The plant is expected to open in 2024.
The battery material will be provided to factories under construction by GM and LG Energy Solution in Ohio and Tennessee.
