Posco Future M, GM push back timeline for Canadian battery materials plant

Posco Future M and General Motors have pushed back the completion of their cathode material plant in Canada, which is part of their joint venture, Ultium CAM.

Originally scheduled to be finished by the end of this month, the plant’s completion has now been delayed to a yet-to-be-determined date. Posco Future M announced the delay on Friday, citing "local conditions" without providing specific details.

The plant, located in Becancour, Quebec, is set to produce high-nickel cathode materials -- one of the most critical components in electric vehicle batteries. When finished, it will have the capacity to produce 30,000 tons of cathode materials per year, which is enough to power around 220,000 EVs. The facility represents the first phase of Posco Future M’s larger North American expansion in partnership with GM under the Ultium CAM name.

Cathode materials are crucial in lithium-ion batteries, as they help determine a battery’s energy density, lifespan and safety. High-nickel cathodes, in particular, are essential for producing batteries that provide longer driving ranges for EVs, which is becoming increasingly important as the industry shifts towards more powerful and longer-lasting electric vehicles.

Although the plant’s original timeline has been disrupted, full-scale production is still expected to begin sometime in 2025. Once operational, the plant will play a key role in GM’s plans to scale up EV production, as the cathode materials produced there will be supplied to Ultium Cells, GM's battery joint venture with LG Energy Solution. Additionally, these materials will likely qualify for tax credits under the US Inflation Reduction Act.