Quebec, Canada - SK On, Ford Motor(NYSE: F), and EcoPro BM (KOSDAQ: 247540) have announced a partnership to build a C$1.2 billion cathode manufacturing facility in Bécancour, Quebec.
This joint venture will play a critical role in the electric vehicle (EV) battery supply chain and is expected to be operational in the first half of 2026.
Why It Matters:
The collaboration between SK On, Ford, and EcoPro BM on a new cathode plant in Quebec demonstrates a shared vision among these companies to invest in the EV supply chain.
This venture, supported by the Canadian government, reflects a broader industry trend toward EV adaptation and the importance of securing a stable supply of key components.
The Key Points
- Investment and Location: The total investment for the facility is C$1.2 billion, with Canada providing C$644 million in financial support. The plant will be located on a 278,000-square-foot site in Bécancour, Quebec.
- Supply Chain Impact: The cathode plant aims to improve the value chain of key battery materials for North American electric vehicles, focusing on a stable supply of core battery materials.
- Government Support: The Canadian federal and provincial governments have welcomed the investment, emphasizing the creation of jobs and the growth of environmentally friendly businesses.
- Existing Partnerships: The collaboration between SK On, Ford, and EcoPro BM strengthens existing relationships and builds on previous collaborations, such as the production of batteries for Ford's F-150 Lightning.
The Big Picture
The decision to establish a cathode manufacturing facility in Quebec demonstrates a concerted effort by key players in the automotive industry to advance the transition to electric vehicles.
Details of the joint venture include:
- Investment details: The plant, with an annual production capacity of 45,000 metric tons, is expected to be operational by the first half of 2026.
- Supply chain integration: The plant is expected to strengthen the battery supply chain in North America by producing cathode-active materials. The importance of cathodes, which determine the performance of an EV battery, makes this investment significant.
- Collaboration strategy: The collaboration between SK On, Ford, and EcoPro BM, while not new, will be further strengthened with this investment. It aligns with SK On's strategy to secure key battery materials in North America, a region with growing EV demand.
The investment is a symbol of commitment to the Canadian economy, potentially impacting the local community, including employment opportunities.
It also highlights Canada's positioning as a global green automotive industry strategic partner.
