POSCO FUTURE M

POSCO Chemical announced today that its joint venture with General Motors (NYSE: GM) has been finalized and will be called Ultium CAM. Majority owned by POSCO Chemical, the two companies are investing a combined $327 million (USD) to form the JV.

In late-2021 the companies announced they would work together to create a joint venture for North American production of Cathode Active Materials (CAM,) one of the most important components in electric vehicle batteries. POSCO Chemical and GM will hold 85% and 15% stakes respectively.

The two companies announced earlier this year that the JV will build a plant with an annual capacity of 30,000 tons of material in Quebec, Canada. Construction of the production plant will begin in August this year and aimed to be completed in the second half of 2024.

The Ultium CAM joint venture plans to produce thousands of tons of material annually, primarily going to GM’s Ultium Cells, LLC plants in the U.S.

POSCO Chemical will expand its cooperation with GM by supplying additional cathode active materials in North America through the establishment of the joint venture and related supply agreement. In December 2020, POSCO Chemical was selected as a supplier of cathode active materials for Ultium Cells. In order to cope with stable orders, the company plans to build an annual production line with an annual production capacity of 60,000 tons in Gwangyang.

Mr. Min Kyung-Zoon, the CEO of POSCO Chemical, and Doug Parks, GM Executive Vice President, attended the signing ceremony on May 27 and signed on behalf of their respective companies.

The two companies expect to increase their participation in the global electric vehicle market by expanding cooperation in raw materials sourcing, research and development, and marketing, through the joint venture, Ulitum CAM is the first CAM joint venture between an automaker and a battery materials company. cathode active materials account for approximately 40% of battery costs, making CAM perhaps the most important material in electric vehicle industry.

Meanwhile, POSCO Chemical will establish POSCO Chemical Canada, a holding company for investment in North America. POSCO Chemical will also produce cathode materials in North America with the establishment of a joint venture following South Korea and China, and will also enter Europe and Indonesia to establish a global mass-production base centered on major markets for electric vehicles.

POSCO Chemical plans to increase the annual production capacity of 105,000 tons of cathode active materials by 2022 to 280,000 tons by 2025 and 610,000 tons by 2030. It plans to expand the annual production capacity of 84,000 tons of anode to 150,000 tons by 2025 and 320,000 tons by 2030.

Min Kyung-zoon, president of POSCO Chemical, said, "We will produce the highest quality battery materials and enhance customer competitiveness based on world-class technology and close cooperation between the two companies. We will lead the transition of electric vehicle era in North America by establishing a stronger partnership with GM."

“The Ultium CAM JV with POSCO Chemical supports GM’s rapid scaling of EV production, as we build a more sustainable and more North America-focused supply chain,” said Doug Parks, GM executive vice president, Global Product Development, Purchasing and Supply Chain.
The companies previously announced plans to form a CAM processing joint venture in December 2021. In March 2022, GM and POSCO Chemical announced that the facility will be built in Bécancour, Quebec.

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