The Elements of Innovation Discovered
Metal Tech News - August 17, 2023
Coming out of the region that will hold one of the more prominent footholds for battery-related industries, Ford Motor Company announced an investment of C$1.2 billion (US$885,660) to build a battery cathode manufacturing facility in Becancour, Quebec, for future Ford electric vehicles.
Becancour is a small town along the shores of the St. Lawrence River about halfway between Montreal and Quebec City that is rapidly emerging as the North American battery manufacturing epicenter being called Lithium Battery Valley, akin to California's Silicon Valley.
Partnering with SK on Co. Ltd., a subsidiary of Korean-based petroleum company SK Innovation Co., and EcoProBM, a Korean-based battery manufacturing company, Ford is investing to develop the batteries it will need for its EVs.
Aiming for production to begin sometime in the first half of 2026, the automaker reports the plant will have a production capacity of up to 45,000 metric tons of cathode active materials annually. This new facility – Ford's first investment in Quebec – is part of the automaker's plan to localize key battery raw material processing in regions where it produces EVs.
"Ford has been serving customers in Canada for 119 years, longer than any other automaker, and we're excited to invest in this new facility to create a vertically integrated, closed-loop battery manufacturing supply chain in North America designed to help make electric vehicles more accessible for millions of people over time," said Ford of Canada President and CEO Bev Goodman. "We're excited for the opportunity for our first-ever investment in Quebec with a new facility that will help shape the EV ecosystem there."
Established in February by EcoProBM, EcoPro CAM Canada LP will head manufacturing of cathode active materials and high-quality nickel cobalt manganese material for rechargeable batteries that are purported of greater performance with improved EV range due to EcoPro's core shell gradient technology.
Construction has already begun on the 280,000 square-meter (over 3 million square feet) site and will include a six-story, roughly 26-meter (84 feet) tall commercial building that will house the projected 345 new jobs this facility will bring to Canada's growing Lithium Battery Valley.
From engineers to sales and service professionals to co-op positions for students from local universities and colleges in Quebec, this influx of industry should help bolster a future North American battery hub.
EcoPro CAM Canada LP will also pursue research and development activities aiming at increasing battery safety and performance as well as increasing productivity and minimizing the environmental footprint of its manufacturing process.
For SK on, the new facility is part of its efforts to secure a stable supply of key battery materials in North America. Through various strategic investments, the South Korean battery maker has been actively developing its battery supply chain in the region where demand for EVs is growing fast and has propped up numerous facilities throughout the U.S.
This latest investment also shows that SK on, which currently operates two battery plants and is adding four more plants with its partners in North America, is committed to leading the way in the region's transition to EVs.
Throughout all its various North American investments, SK on's annual production capacity on this continent is expected to reach more than 180 gigawatt-hours after 2025, which is enough to power about 1.7 million EVs a year.
"Through the cathode JV, the three companies can have a stable supply of battery raw materials in North America," said SK on CCO Min-suk Sung. "We will continue to work with our partners to lead electrification of the global auto market."
For EcoProBM, Canada is its second global market expansion after Hungary and marks the company's entry into North America.
Through the joint venture, the Quebec facility will become a key landmark for EcoProBM's pioneering into the North American market. By investing to mass produce and supply 45,000 metric tons of cathode materials, the company hopes to support the production of up to 225,000 electric vehicles annually.
In 2021, EcoProBM established a complete cathode material ecosystem in Pohang, Korea – handling everything from recycling waste batteries to producing lithium, precursors, and cathode materials.
"By expanding here in North America, EcoProBM looks forward to globalizing our growth in cathode materials, which has been a unique strength of our company," said EcoProBM CEO Jae-hwan Joo. "We also are prepared to contribute to the community in Canada and Quebec and contribute to the development of the local economy, including by hiring locally."
Support from both the federal and provincial governments is vital to securing this joint investment for Canada and Quebec, so with such an ample opportunity, the Canadian government has shown its unity by leaning heavily into the clean industries of the future.
"This investment once again shows that Canada is the green strategic partner of choice for world leaders in the automobile industry," said The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry. "Today, we are helping to further position Quebec as a key hub in the electric vehicle supply chain, as we continue to build our battery ecosystem. This investment is good for the environment and for the economy, and it will ensure well-paying jobs for years to come."
With previous interest and investment by General Motors, POSCO Chemical, and BASF already deciding to set up shop in this soon-to-be booming battery region, Quebec Premier Francois Legault also shared his enthusiasm for the investment.
"I am very proud that Quebec has drawn the attention of big players like Ford-EcoProBM-SK On. After GM-POSCO this spring, we are announcing a new major investment of 1.2 billion in the Vallée de la transition énergétique (Valley of the energy transition), which will allow for the construction of a new cathode active materials plant in Becancour. We are building the foundations of an industry that will allow Quebec to become a leader in the green economy in North America and the world. With the energy transition, we have the chance to make a name for ourselves in the new economy, to become richer all while reducing global GHG emissions."
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