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MONTREAL \u2014 The electric-vehicle slowdown is being felt in B\u00e9cancour, the city at the heart of Quebec\u2019s dreams of becoming a hub in the North American battery supply chain.\u00a0<\/p>\n
The planned expansion of a battery facility in the city has been put on hold, while the plant that was supposed to feed it has been cancelled.<\/p>\n
Quebec Economy Minister Christine Fr\u00e9chette confirmed the news on Thursday, calling it \u201cdisappointing.\u201d She said the decisions are part of a global slump in the development of the battery supply chain. \u201cIt certainly has an impact on our projects, which are at the heart of the battery industry,\u201d she said. \u201cBut \u2026 just because it\u2019s slowing down doesn\u2019t mean it\u2019s not moving forward.\u201d<\/p>\n
A spokesperson for General Motors Canada said Thursday that the company is pausing the second phase of a project to produce cathode active materials for electric-vehicle batteries. The project, called Ultium CAM, is a partnership between GM and South Korean manufacturer POSCO.\u00a0<\/p>\n
The first phase of the project is under construction, with a $600-million facility in B\u00e9cancour expected to start production in 2026. But a subsequent expansion, which would have increased production capacity of cathode active materials and added production of the base ingredients used to make them, is now on ice. The decision was made \u201cin light of evolving market dynamics,\u201d according to spokesperson Marie Binette.\u00a0<\/p>\n
As a result of that decision, Brazilian mining giant Vale SA has scrapped plans for a nickel sulfate plant that would have supplied the second phase of the Ultium CAM project. In a statement, Vale Base Metals said GM \u201cwill not need nickel sulfate in Quebec at this time.\u201d<\/p>\n
\u201cVale Base Metals and GM continue to work on their partnership to supply Canadian nickel into GM\u2019s North American supply chain,\u201d the statement said.\u00a0<\/p>\n
The news, first reported Thursday by Radio-Canada, comes shortly after the Quebec government pulled the plug on another electric-vehicle battery project near Montreal. Last month, Fr\u00e9chette announced the province would end funding for the planned Northvolt battery plant and would try to recoup some of its investment in the project.\u00a0<\/p>\n
At the time, Fr\u00e9chette pointed to battery projects in B\u00e9cancour as proof that the industry was still alive and well in Quebec. On Thursday, she insisted that\u2019s still the case, saying that 3,000 workers are building factories in the city. She said she hopes the Ultium CAM expansion will be relaunched at some point.\u00a0<\/p>\n
\u201cThis is the sector we will have to focus on for years to come, on an international scale,\u201d she said. \u201cSo we are in a good economic position to benefit from this, thanks to both our expertise and the green energy we have.\u201d<\/p>\n
The federal and provincial governments have together funded about $300 million of the first phase of the Ultium CAM project, including a $152-million, partly forgivable loan from Quebec.\u00a0<\/p>\n
Earlier this week, GM reported it will record a negative impact of US$1.6 billion in its next quarter after tax incentives for electric vehicles were slashed by the U.S. and rules governing emissions are relaxed.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n