General Motors Canada and the Korean company POSCO Chemical announced Monday morning jointly with the governments of Quebec and Canada a joint investment of 500 million dollars in Bécancour, in order to erect a plant there which will produce materials used in vehicle batteries. upcoming electrics from the Detroit automaker.
Construction of the plant begins immediately and should eventually employ around 200 people. The first components will leave the factory from 2025. The site chosen for this installation will allow rapid expansion thereafter, if the needs justify it. General Motors (GM), like other North American automakers, is beginning to feel the pressure of an industrial and political context that is pushing for an acceleration of the electrification of the sector.
By 2030, half of new vehicles sold in the United States will have to be powered by an electric motor. To meet this target imposed by the US government, GM wants to increase its production rate and plans to assemble at least one million electric vehicles per year from 2025.
40% Quebec batteries
The components that will be manufactured in Bécancour will make up the cathode of the electric batteries that will equip the first vehicles to leave the other factories of the automotive group. Because GM uses a single battery technology, called Ultium, in all of its vehicles, its components must be produced in high volume. However, at present, this production mainly takes place in Asia.
“GM and our suppliers are creating a whole new supply chain for a sustainable, safer market for the future of electric vehicles”, summed up in a press conference Monday morning the vice president of supply and future product development for GM, Doug Parks. “Canada will play an important role in this and we are very pleased with the support received, both locally and at the federal and provincial levels. »
The federal Ministry of Innovation, Science and Economic Development as well as Investissement Québec were actively involved in the construction of this plant. GM and POSCO had already signed a partnership agreement in December 2021.
According to GM, the cathode elements that will be produced at Bécancour represent approximately 40% of the cost of the battery. Local production will not only ensure a stable supply, but could also help reduce production costs. Clean and cheap hydroelectric power from Quebec played a role in GM and POSCO’s eventual decision to set up a plant in the province, said GM Canada’s vice president of public affairs and environment, David Paterson.
The components produced in Bécancour will initially be used in the production of vehicles highly anticipated by North American consumers, including the Chevrolet Silverado EV pickup truck, the GMC Hummer EV and the Cadillac Lyriq.
At the heart of electrification
Bécancour is positioning itself as an epicenter of the emerging North American and even international electrical transportation components sector. The General Motors and POSCO announcement comes just days after German construction giant BASF announced its own electric vehicle battery manufacturing and recycling plant, also in Bécancour.
The Government of Quebec and Investissement Quebec are very active in the development of this region as part of the implementation of a strategy aimed at creating a provincial sector for the manufacture of electrical components.
The advantages put forward by the government and which seem to resonate with foreign decision-makers are numerous: in addition to the reasonable cost of energy and materials, affordable skilled labor and access to various transportation networks goods also weigh in the balance.
“This is what the government argued in our discussions” with a view to settling in Bécancour, confirmed to the Homework David Paterson. “The predictable costs and the reliability of the logistics allow us to ensure that what we produce there can be transported quickly to our other factories elsewhere in North America. »