Canada's federal government and the Government of Quebec are each providing $150 million to fund a new battery materials facility that is being developed by automotive giant General Motors (GM).
The new facility, which will be based in Becancour, Quebec, will produce cathode active materials (CAM) for electric vehicle batteries and is expected to create 200 jobs.
General Motors has partnered with South Korea's POSCO to build the Quebec-based facility. The two companies plan to have the plant operational by 2025.
The total cost to construct the battery materials facility has been estimated at $600 million.
Cathode active materials involve components such as nickel, lithium and other raw materials that make up about 40% of the cost of a battery.
Canada is home to large quantities of raw materials such as lithium, nickel and cobalt that are needed for electric vehicle batteries.
General Motors has said that the cathode active materials produced in Canada will be used to make its Ultium batteries that power electric vehicles such as the Chevrolet Silverado and GMC Hummer.
General Motors’ stock is down 14% over the last 12 months and trading at $33.29 per share.
