POSCO Future M to Invest Additional 1 Trillion Won in GM Joint Battery Material Plant

2nd Phase Investment to Expand 'UltiumCam' Production Capacity
Ultium Cells Signs 13 Trillion KRW Supply Contract for 9 Years

POSCO Future M and General Motors (GM) are making a second-phase investment to expand the production capacity of their North American cathode material joint venture, 'Ultium CAM.'

The two companies announced on the 2nd that they will expand the cathode material production plant, a key battery material, and establish a new precursor plant, an intermediate material. The target completion date is 2026. The cathode material plant will be expanded from an annual capacity of 30,000 tons to 63,000 tons, and a new precursor plant with an annual capacity of 45,000 tons will also be established. To this end, POSCO Future M held a board meeting on the same day and resolved to invest $757 million (approximately 1 trillion KRW) in POSCO Chemical Canada, its North American battery materials subsidiary.

Ultium CAM also signed a large-scale contract to supply high-nickel cathode materials manufactured on the expanded line to GM and LG Energy Solution's battery joint venture, 'Ultium Cells.' The contract period and scale amount to approximately 13.18 trillion KRW over nine years. With this investment, GM will establish an annual production system of 1 million electric vehicles in North America by 2025. It plans to build four battery cell joint plants in the U.S. with a production capacity of 160 GWh. GM will receive cathode materials necessary for the production of GM electric vehicles such as Chevrolet, Cadillac, and GMC through the joint venture Ultium CAM.

The construction site of the 30,000-ton-per-year Ultium CAM cathode material plant being built through a joint venture between POSCO Future M and GM in Becancour, Quebec, Canada.
[Photo by POSCO Future M]

POSCO Future M established the joint venture Ultium CAM with global automaker GM in July 2022, becoming the first battery materials company to do so. It is constructing a cathode material plant with an annual capacity of 30,000 tons in Becancour, Quebec, Canada, aiming for completion in 2024. Cathode materials, which account for 40% of battery costs, are key materials that determine performance such as capacity and output. Precursors are intermediate materials for cathode materials, manufactured by processing raw materials such as nickel, cobalt, and manganese.

POSCO Future M is expanding its global mass production bases in Korea as well as key electric vehicle markets such as North America, China, and Europe. Through this investment, it will secure large-scale production capacity in North America, which is strongly promoting regional supply chain establishment policies such as the Inflation Reduction Act (IRA). Moving forward, it plans to accelerate global partnerships and mass production investments to increase its current global cathode material production capacity of 105,000 tons per year to 610,000 tons by 2030.

Black powder-type cathode material contained in a glass bottle

Doug Parks, GM Vice President of Global Product Development and Purchasing, said, “The expansion of the joint venture for cathode materials and precursors is a significant achievement in strengthening GM’s supply chain necessary for expanding its North American electric vehicle business. As battery production begins in the U.S., we will expand investments to strengthen the entire battery supply chain and contribute to investment expansion and job creation across North America.”

Kim Jun-hyung, President of POSCO Future M, said, “With proactive investment in North America, where the electric vehicle market is rapidly growing, we have laid the foundation to become a global leader in battery materials. Based on POSCO Future M’s unique technology and close cooperation between the two companies, we will produce the highest quality battery materials and lead the growth of the global eco-friendly mobility industry.”