SK on, Ford, EcoPro BM to jointly build $898 mn cathode plant in Quebec

Representatives from SK On, Ford, EcoPro BM and the Canadian government officials take a commemorative photo at the cathode plant construction site in the Bécancour Industrial Park in Quebec, Canada. [Courtesy of EcoPro]

SK on Co., the global electric vehicle (EV) battery subsidiary of South Korea’s SK innovation Co., is gearing up to invest a total of 1.2 trillion won ($898.68 million) to build a battery cathode plant in Quebec, Canada, in partnership with U.S. automaker Ford Motor Co. and Korea’s leading cathode material producer EcoPro BM Co.

The cathode material holds pivotal importance in determining battery performance. The alliance formed among these three companies is aimed at reinforcing the value chain spanning from key battery materials to the production of electric vehicles.

SK on, Ford, and EcoPro BM announced on Thursday that they will build a joint venture plant on a 278,000-square-meter site within the Bécancour Industrial Park in Quebec with a total investment of 1.2 billion Canadian dollars.

“Through this joint venture, the three companies have established a stable supply chain for key battery materials in North America,” said Sung Min-suk, chief commercial officer at SK on. “The three companies will strengthen their partnership to lead the electrification of the global automotive market.”

Bev Goodman, president and chief executive officer of Ford Canada expressed her excitement at being able to create a vertically integrated battery supply chain in North America. “This plant will make electric vehicles more accessible to many people,” she hoped.

“After Hungary, EcoPro BM has the opportunity to build a plant in Canada and become a truly global advanced cathode materials company,” said Joo Jae-hwan, president and CEO at EcoPro BM. “We will contribute to the Canadian and Quebec communities and help develop the local economy, including local employment.”

The plant will be operated by EcoPro CAM Canada LP, a local subsidiary established by EcoPro BM in February.

An aerial view of the cathode plant in Bécancour, Quebec, Canada. [Courtesy of EcoPro]

The joint plant is scheduled to begin operation in the first half of 2026 with the capacity to produce 45,000 tons of cathode active materials per year. The three companies have been in discussions regarding the construction of the factory since signing a letter of intent (LOI) for the cathode material production facility investment in July last year.

The Canadian federal and Quebec provincial governments have pledged a total of CAD640.44 million in financial support. Canada expects that this investment will accelerate the development of its eco-friendly industry and the establishment of a battery supply chain.

This collaboration will enable the three companies to establish a value chain connecting materials (cathode material), components (battery), and finished products (EV) in North America. Moreover, this joint venture will secure a stable supply of key battery materials and enhance price competitiveness.

The partnership among the three companies is expected to strengthen further. Currently, SK on produces NCM9 batteries using cathode materials supplied by EcoPro BM. Ford has incorporated these batteries into its large electric pickup truck, the F-150 Lightning, solidifying their collaborative framework.

This investment is also anticipated to facilitate compliance with the U.S. Inflation Reduction Act (IRA). Canada has a free trade agreement (FTA) with the U.S., allowing cathode materials produced in the country to meet the requirements for IRA core mineral subsidies.

To response to the IRA, SK on has been enhancing its battery raw material supply chain in North America, including signing a joint development agreement for cathode materials with U.S. mineral development companies Urbix Resources LLC and Westwater Resources Inc.

Currently, SK on operates two battery plants in North America and plans to add a total of four plants through joint ventures with automotive partners. Once these plants are completed, SK on’s annual battery production capacity in North America will exceed 180 gigawatt-hours (GWh), which is enough to power about 1.7 million EVs a year.