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| POSCO Future M and GM are jointly constructing an Ultium CAM cathode material plant in Vancouver, Canada, capable of producing 30,000 tons annually. Courtesy of POSCO Future M |
By Kim Hyun-bin
POSCO Future M and General Motors (GM) have announced plans to expand their joint investment in battery core and electrode materials, while also strengthening their supply chain collaboration in North America.
According to POSCO Future M Friday, the two companies have initiated a two-phase investment to increase the production capacity of their North American cathode material joint venture (JV), Ultium CAM.
"Through proactive investments in the rapidly growing North American electric vehicle market, we have established a foundation to leap forward as a global leader in battery materials. With POSCO Future M's exceptional technology and close collaboration with our partners, we will produce the highest quality battery materials and drive the growth of the global eco-friendly mobility industry," POSCO Future M CEO Kim Jun-hyung said.
The companies aim to complete the expansion of the cathode material production plant and a new anode material plant by 2026.
POSCO Future M plans to invest approximately $757 million billion in Ultium CAM. The investment will be allocated toward the expansion of a cathode material production plant with an annual capacity of 33,000 tons and the construction of an anode material plant with an annual capacity of 45,000 tons.
Cathode materials are a crucial component, accounting for 40 percent of battery production costs, and significantly influencing battery capacity and performance. The anode material, on the other hand, is an intermediate substance derived from processed raw materials such as nickel, cobalt and manganese.
Additionally, Ultium CAM has secured a substantial contract to supply high-nickel cathode materials produced from the expanded product line to GM and LG Energy Solution's battery joint venture, Ultium Cells. The contract is valued at approximately $10 billion over a nine-year period from 2025 to 2033.
Last year, POSCO Future M collaborated with GM to establish the JV, Ultium CAM, making it the first battery materials company to partner with a global automaker. They are currently constructing a cathode material plant in Quebec, Canada, with an annual capacity of 30,000 tons, set to be completed by 2024.
Through this investment, the companies aim to expand their cathode material production capacity and establish a centralized site capable of local production for intermediate materials, including anode materials.
POSCO Future M stated that the proactive investment aligns with the growing demand for electric vehicles in North America and the region's policies to strengthen the battery supply chain.
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