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POSCO Chemical enters North American EV battery market via GM JV in Canada
POSCO Chemical and General Motors (GM) will build a cathode material joint venture in Quebec,
Canada, and use it as a facility to establish a supply chain for key battery materials in North America.

The two companies as part of the Joint Venture plan to invest approximately 400 million USD in the
first phase from 2023 to build a large-scale joint plant in Becancour, Quebec, Canada and produce
high-nickel cathode materials used in GM's electric vehicle batteries.

The site’s construction will allow for future expansion opportunities as GM expands its electric vehicle

Becancour is an optimal location for the cathode active material business in North America in terms of
raw material, investment, manufacturing technology and eco-friendliness. Becancour has advantages
in raw material supply chain and logistics facilities adjacent to mines, abundant hydro and renewable
energy, etc. The government also actively supports the lithium-ion battery industry with the motto
‘From Mines to Mobility.’

Based on the competitiveness of the planned new facility in Becancour, Quebec, POSCO Chemical
plans to build a key battery material supply chain in North America, where the electric vehicle market
is rapidly growing, and spur the market penetration.

According to market research firm IHS, the North American electric vehicle battery market is expected
to grow at a CAGR of 58% from 46GWh in 2021 to 143GWh in 2023 and 286GWh in 2025. Cathode
material accounts for 40% of the battery cost, and is a key material that the Canadian government is
encouraging regional production through its tariff policy.

By the end of 2025, GM plans to have capacity to build 1 million electric vehicles in North America, and
2 million globally. A key aspect of GM’s EV expansion is Ultium Cells, a joint venture with LG Energy
Solution building four battery assembly plants in the U.S. It is expanding its global electric vehicle
business by operating an electric vehicle plant in Ingersoll, Ontario, Canada, this year and announcing
the launch of 10 electric vehicles in Korea.

POSCO Chemical produces high-nickel cathode materials and will supply to Ultium Cells plants in the
U.S. GM vehicles powered by Ultium batteries include the GMC HUMMER EV, BrightDrop EV600 electric
delivery van, Cadillac LYRIQ and many upcoming vehicles such as the Chevrolet Silverado EV.

POSCO Chemical and GM have expanded their relationship beyond customers to business partners,
including the announced plans to form a joint venture for cathode materials in North America. As GM
expands its electric vehicle business in the future, cooperation with POSCO Chemical, which has global
mass production capabilities and competitiveness in battery raw materials such as lithium, nickel, and
graphite, is expected to become stronger.

POSCO Chemical plans to increase the annual production capacity of cathode active materials from
105,000 tons per year in 2022 to 280,000 tons per year in 2025 and 420,000 tons per year by 2030.

POSCO Chemical CEO Min Kyung-zoon says, “POSCO Chemical is set to expand battery material
supplying capability across North America through establishing a cathode active material plant in
Canada,” adding “We will lead the successful transition to the “EV era” by further strengthening
strategic partnership with GM and securing production line with world-class technological

“GM and our supplier partners are creating a new, more secure and more sustainable ecosystem for
EVs, built on a foundation of North American resources, technology and manufacturing expertise,” said
Doug Parks, GM Executive Vice President, Global Product Development, Purchasing and Supply
Chain. “Canada is playing an important role in our all-electric future, and we are grateful for the strong
support we have received from local and provincial and national officials to grow a North Americanfocused
EV value chain.”
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