General Motors, in partnership with South Korea's POSCO Chemical, announced an investment of US$400 million to build a new battery raw material plant in Quebec, Canada.
General Motors announced today that it will partner with POSCO Chemical, a South Korean company, to build a new lithium battery raw material plant in Quebec, Canada, with an estimated investment of up to US$400 million.
The two manufacturers stated that they are currently working with the Quebec government and the new plant will provide electrode materials for lithium batteries including nickel, lithium, and other metal materials. These materials will become part of GM's Ultium battery pack, ready to be used in new electric vehicles (EV).
This may be an important cornerstone of GM's next wave of countermoves because several of its primary electric vehicles, such as the Cadillac Lyriq, pure electric Hummer and Chevrolet Silverado EV, require a large amount of lithium battery supply, and these battery raw materials alone account for almost 40% of vehicle cost, so being able to control supply is a key first step in cost control.
Construction on the new plant started at the same time as the news release and is expected to create 200 jobs. GM will also start the construction of a new plant in Ontario within this year, which will allow Canada to have a complete domestic EV supply chain.
GM has invested a great deal of resources in order to ensure the integrity of the EV supply chain. At present, GM has established joint ventures or strategic alliances to procure lithium mines, rare earths, alloys and permanent magnets.
(Image: GM)