GM, partner POSCO announce plans for Quebec battery material site

General Motors Co. and POSCO Chemical are planning to build a facility in Quebec to produce material for GM's future electric vehicle batteries, the companies said Tuesday. 

GM and South Korea-based POSCO are working with the governments of Canada and Quebec to construct the new facility in Bécancour. The investment cost is estimated at $400 million (C$500 million).

The plant will produce cathode active material, or CAM, for the batteries used with GM's new Ultium EV platform, including those on the Chevrolet Silverado EV, GMC Hummer EV and Cadillac Lyriq.

The companies in December said they would form a CAM processing joint venture with the majority owned by POSCO. 

Construction on the new facility will start immediately and create about 200 jobs. The site’s construction will allow for future expansion.

The Quebec site will process CAM, which consists of processed nickel, lithium and other materials representing about 40% of the cost of a battery cell, GM said. 

The Detroit automaker is building up its supply chain for EVs to reach its goal of having the capacity to build 1 million electric vehicles in North America by the end of 2025. GM anticipates the majority of components will be sourced, processed or manufactured in North America.

 khall@detroitnews.com

Twitter:@bykaleahall