Battery sector | A lost factory, immediately replaced?

Everything seems to indicate that the German company BASF will not come to manufacture cathodes in the Bécancour industrial park. On the other hand, a manganese manufacturer is in discussions with Investissement Québec to establish itself there.

The President and CEO of Investissement Québec (IQ), Guy LeBlanc, will deliver a speech this Tuesday morning at the Auberge Godefroy in Bécancour in front of an audience of at least 200 business people from the surrounding area. Investissement Québec is keen to ensure that the battery sector projects are completed in time to begin production in 2026 and that local entrepreneurs can have their share of the windfall that passes.

The Press spoke with Mr. LeBlanc ahead of the event.

A study from the British publication Benchmark Minerals estimates that 28% of cathodes used in electric vehicle batteries in North America will be manufactured in Quebec in 2030. “With or without BASF? ”, he was asked.

“Without BASF,” replied Mr. LeBlanc. Let’s say that the BASF case is not strong. We have moved on, indeed. I think the option on the land has expired. The field is already occupied by several other players. »

The BASF plant was announced in March 2022 around the same time as GM-POSCO. Unlike the second, the factory of the first never came out of the ground. Mr. LeBlanc is not offended since Quebec has attracted three cathodivers so far: Ford, GM and Northvolt, an integrated producer of battery cells.

And if BASF doesn’t come to Bécancour, maybe we’ll see Euro Manganese?

“This is one of the players that interests us because manganese is part of NMC, nickel-manganese-cobalt batteries, batteries intended for mid- and high-end vehicles with batteries with greater autonomy,” confirms Mr. LeBlanc. These are people we talk to and who have land planned in Bécancour. This is part of the upcoming announcements. »

Vancouver-based Euro Manganese is a $100 million market capitalization battery materials startup with the goal of becoming a leading producer of high-purity manganese for the electric vehicle industry . The company continues to develop the Chvaletice manganese project in the Czech Republic.

Manganese is a component of the cathode. In Bécancour, GM and Ford will manufacture cathode materials – the positive pole of a lithium-ion battery – while Nouveau Monde Graphite manufactures anodes, the negative pole.

Mr. LeBlanc mentions an investment for Euro Manganese amounting to several hundred million.

From 8,000 to 10,000 jobs in the long term

To date, projects worth 15 billion have been announced or are about to be announced, 20% of which is advanced by Quebec. Of the 3 billion, 750 million, maintains Mr. LeBlanc, represent subsidies from the provincial government. The balance constitutes repayable interest-bearing loans and equity investments in certain companies, insists the boss. Ultimately, total investments could reach 30 billion, from mining to battery recycling.

In investments of 15 billion, we find Northvolt (7 billion), GM-POSCO (600 million), Ford (1.3 billion) and Volta (750 million), for those whose amount we know. Among those to come, there is Nemaska ​​Lithium, Nouveau Monde Graphite, Vale and, possibly, Euro Manganese. Mr. LeBlanc speaks of 8,000 to 10,000 quality permanent jobs in the long term for this group of companies.

If we are to believe the boss of IQ, the next official announcements will be those of Nemaska ​​Lithium, whose factory has already been built, and Nouveau Monde Graphite.

“Of the 15 billion, there are approximately 11 billion projects announced. This represents 900 MW when these companies begin operating in 2026,” he said in response to a question about the energy available for the battery sector.

Tight deadlines

These days, what makes Guy LeBlanc nervous is less the availability of electricity than respecting tight deadlines for the construction of factories.

“What concerns me most is having factories ready to meet the contracts with customers which were mostly signed in 2026,” he says.

IQ formed an intervention group under the coordination of Sabrina Bouchard to connect local companies with global clients present with the aim of maximizing regional benefits.

For example, GM-POSCO has its cathode plant built by a consortium, which includes Pomerleau, among others. This gave 90% of subcontracting contracts to Quebec companies, half of which to entrepreneurs in the Mauricie/Centre-du-Québec region.

With Julien Arsenault, The Press