The planned expansion of an electric vehicle battery materials facility in Bécancour, Quebec, has been put on hold indefinitely, and a related nickel sulfate plant has been cancelled. In March 2022, General Motors and South Korea–based POSCO Chemical announced a collaboration, named Ultium Cam, to build a cathode active materials plant in Quebec for GM’s Ultium battery systems. Construction of the facility’s first phase continues, with production expected to begin in 2026. That phase represents an investment of approximately $600 million.
Quebec Economy Minister Christine Fréchette confirmed that Phase 2, which aimed to boost output by constructing a plant to produce nickel sulfate—a key component in cathode active materials—will not proceed at this time. “My hope is that this pause will be of a limited duration, and that in the near future we’ll be able to relaunch the project,” she said during an announcement in Mirabel.
Following the decision to suspend Phase 2, Vale Base Metals cancelled plans for its nickel sulfate plant, which had been intended to supply Ultium Cam. In a statement, Vale noted that GM “will not need nickel sulfate in Quebec at this time.” Fréchette attributed the setbacks to a global slowdown in the electric vehicle battery industry but emphasized Quebec’s ongoing commitment to the sector. She pointed to several other battery-related projects in the Bécancour region that continue to advance.
The Ultium Cam project’s first phase has received about $300 million in government support, including a $152-million, partly forgivable loan from Quebec. The announcement follows the abandonment of Northvolt’s proposed $7-billion EV battery plant near Montreal, which resulted in a $270-million investment loss for the province earlier this year.
Separately, GM recently reported it expects a $1.6-billion U.S. negative impact in its next quarter, citing reductions in U.S. electric vehicle tax incentives and relaxed emissions regulations.
Source: CBC News
