Major progress in the development of a “battery sector” in Quebec, in order to take advantage of the boom in the electric vehicle market.
Updated yesterday at 4:23 p.m.
The German chemical giant BASF confirms the choice of the Bécancour industrial and port park for its next manufacturing and recycling plant for battery materials for the electrified transport vehicle industry.
In a financial communication released on Friday, the management of BASF indicates that it has signed an “agreement to secure land in Bécancour, Quebec, Canada, for its future site for the manufacture and recycling of materials for cathodic use. [pièces de batteries] as part of its commitment to support North American producers in their transition to electric mobility”.
According to BASF, the site chosen in Bécancour will be able to accommodate a plant with a capacity of up to 100,000 tonnes per year of battery cathode materials. Still in technical and financial planning, the plant is scheduled for production in three years, i.e. in 2025.
PHOTO PROVIDED BY THE BÉCANCOUR INDUSTRIAL AND PORT PARK SOCIETY
Bécancour Industrial and Port Park, owned by the provincial government
“With new investments in electric vehicles and supporting infrastructure being announced frequently in North America, we are excited to continue our own investment in the region,” said Peter Schuhmacher, president of BASF’s Catalysts Division, in a statement. communicated.
“This acquisition of land [à Bécancour] is a prerequisite and necessary to advance our strategy to increase our presence in key regions to better serve our customers’ operations with sustainable and reliable local supply. We look forward to supporting the transition to “e-mobility” in the United States, Canada, Mexico and beyond. »
Quebec “very attractive”
Asked to comment on this decision by BASF, Quebec’s Minister of Economy and Innovation, Pierre Fitzgibbon, told The Press that it “demonstrates that Quebec is becoming very attractive to stakeholders in the global supply chain of materials for the ‘battery sector’ of the electric vehicle industry”.
As for the next steps of this major industrial project, the Minister said he expected that “we can conclude a financial agreement with BASF within two to three months, and then announce the details of phase 1 of this project. For the moment, it is a question of a first phase of a few hundred million dollars in investments and the creation of a hundred well-paid jobs”.
What type of financial agreement?
“BASF and us [lw gouvernement du Québec] we agree at a high level on the type of financial support that could be provided, whether it be with the costs of land development and services, in terms of electricity tariffs as well as loans on advantageous terms from of Quebec and the federal government,” explained Mr. Fitzgibbon during an interview with The Press.
“After having chosen its site in Bécancour, BASF must now decide on the sequence in two or three stages of its industrial project and in which the total investment could exceed one billion dollars. Certainly, BASF wants to move fast enough as the battery supply chain [pour véhicules électriques] is increasingly tight worldwide. Also, the electric vehicle industry wants to reduce its dependence on battery suppliers located in Asia. »
“Battery sector” in Bécancour
Expected for some time in the Bécancour region, the establishment by BASF of a factory for internal battery parts materials is considered to be one of the key elements in the development of a “battery sector” in Quebec in the effervescent market. electrification of transport vehicles.
As part of its development strategy for such a sector in Quebec, the Legault government announced last October the possibility of total investments – private and public – of the order of 8 to 10 billion dollars over a few years.
Moreover, as revealed The Press on February 10, the Quebec government recently advanced $38 million to the Bécancour Industrial and Port Park Company (SPIPB) to speed up the preparation of land with services to accommodate industrial projects related to the “battery sector “.
Joined by The Pressthe Chairman and CEO of SPIPB, Maurice Richard, confirmed that BASF was in the process of acquiring land with an area of 1.5 million square meters, while having already registered a purchase option on a neighboring land for a possible second phase of its industrial establishment.
In its press release, BASF management indicates that its future industrial site in Bécancour is “ideally located along the St. Lawrence River between Montreal and Quebec” and that it “offers favorable conditions for highly efficient logistics”.
BASF also points out that its future battery materials plant in Bécancour will be able to “benefit from competitive hydroelectricity to further reduce the carbon footprint of [ses] products compared to the industry average.
Before BASF’s announcement of Bécancour’s choice, Nouveau Monde Graphite and Nemaska Lithium, two processors of basic materials for lithium-ion batteries, had already opted for the industrial and port park located across from Trois-Rivières. .
In addition, the Britishvolt company, whose Canadian branch is headed by the former Premier of Quebec Philippe Couillard, has indicated its preference for Bécancour for its project for a factory of lithium-ion battery cells for electric vehicles. .
Finally, the company StromVolt, established in Ontario, but headed by Quebecer Maxime Vidricaire, is also considering the Bécancour industrial park for its plant project.