Canada, Quebec to provide C$300 mn for GM-POSCO battery plant

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Canada, Quebec to provide C$300 mn for GM-POSCO battery plant

Canada, Quebec will each provide about C $300 million for a General Motors-POSCO chemical battery materials facility, Canada's federal government and the province will each provide about C $150 million $112 million, the Canadian industry ministry said on Monday.

The U.S. car maker and South Korea's POSCO announced their plan to build the facility at Becancour, Quebec, last year, to produce cathode active material CAM for electric vehicle EV batteries.

The companies aim to have the plant, described on Monday as a more than $600 million project, running by 2025.

CAM comprises components such as processed nickel, lithium and other materials that make up about 40% of the cost of a battery, the industry ministry said in a statement.

Canada is a major mining hub for minerals such as lithium, nickel, and cobalt, and has been trying to woo companies involved in all levels of the EV supply chain via a multi-billion-dollar green technology fund as the world is striving to reduce carbon emissions.

This investment in GM-POSCO'sPOSCO's new facility in Becancour will further enhance Quebec as a key hub in Canada's growing EV supply chain, industry minister Francois-Philippe Champagne said.

The CAM produced at the plant is used to produce GM's Ultium batteries that will drive the company's EVs, such as the Chevrolet Silverado EV and Cadillac LYRIQ.