South Korea’s POSCO Future M Co. said on Tuesday that the Canadian government will provide significant funding to support the construction of its Ultium CAM electric vehicle battery plant, a joint venture with General Motors Co. in Bécancour, Quebec.

POSCO Future M and GM formed the joint venture in July 2022 and are investing about $633 million to build a 30,000 tons per year cathode production plant in the region located about halfway between Montreal and Quebec City. The plant will be the largest battery cathode production facility ever built in Canada.

According to POSCO Future M, both the federal government of Canada and the government of Quebec have pledged financial support for the project during a joint announcement at the construction site of the Ultium CAM battery plant.

Local media outlets, including CTV News, reported that the Quebec government will contribute C$152 million ($112 million), while the federal government will provide C$147 million in financial support for the project.

In an interview, Quebec Premier François Legault said that the government’s funding would be provided in the form of loans, and if the project maintains the promised level of employment for ten years, the loan will be forgiven.

Canada’s Federal Industry Minister François-Philippe Champagne also confirmed the government’s commitment to providing up to C$147 million in financial support for the project although details regarding the funding method were not disclosed.

POSCO Future M said the incentive support represents a significant portion of the necessary investment for the project and this funding will provide renewed momentum for the construction of the battery plant, which is expected to be completed in the second half of 2024.

By Pulse

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