Canada invests in GM & Posco cathode plant
General Motors and Posco Chemical will receive a total of around 300 million Canadian dollars in government support for their joint cathode material plant in Canada. The equivalent of around €205 million will be shared by the province of Québec and the federal government.
152 million CAD (104.5 million euros) will come in the form of a loan from the provincial government of Québec. Of this, 132 million dollars (90.7 million euros) are to be forgiven if the factory maintains the promised jobs for ten years. The Canadian government will contribute up to 147 million dollars (101 million euros). However, it is still unclear what kind of funding is involved. That makes a total of 299 million Canadian dollars (205 million euros) mentioned at the beginning.
GM and Posco started construction of the cathode material plant in Bécancour in the Canadian province of Québec in 2022, which is to supply cathode material for the batteries of GM’s Ultium electric vehicle platform from 2025 with an annual capacity of 30,000 tonnes.
The investment in the plant is put at 600 million CAD by Canadian media – earlier reports still spoke of 500 million CAD. This would mean that GM and Posco would get about half of the investment costs subsidised through the subsidy programmes – albeit only over time.
Quebec Premier François Legault sees the factory as a “win-win for Quebec”. The jobs created there are said to be in the ballpark of 200 employees at the start of production in 2025. This would lead to higher tax revenues in the province.
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