EcoPro teams up with Ford, SK on to build cathode material plant in Canada

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

South Korean EV battery material company EcoPro Co. is ramping up its global battery material market strategy through a three-way partnership belt connecting South Korea, Canada, and Hungary. On Wednesday, EcoPro announced its plans to establish “EcoPro Chem Canada LP,” which will oversee the construction of a cathode material factory in Bécancour, Quebec, Canada.

“In February, EcoPro BM established a local base with 100 percent ownership, and the groundbreaking for the factory is already underway,” said Joo Jae-hwan, CEO of EcoPro BM. “Once the joint venture between EcoPro, SK on and Ford, named EcoPro Chem Canada LP, is formed, the construction of the factory will accelerate.”

EcoPro BM’s top management recently met with senior officials from the Canadian and Quebec governments, as well as the management of joint venture partners SK on and Ford, to finalize investment amount, location, production capacity, and schedule terms for the “Bécancour Project.”

The project involves a total investment of 1.2 trillion won ($905.7 million), with EcoPro Chem Canada LP responsible for about half, while the remaining half will be supported by subsidies from the Canadian and Quebec governments.

Among the 600 billion won managed by EcoPro Chem Canada LP, EcoPro is taking charge of about half, with SK on and Ford responsible for the rest. As the factory focuses on producing cathode materials, EcoPro BM is making the most significant investment among the joint venture partners.

The factory, expected to be completed by 2026, is projected to produce around 45,000 tons of cathode materials for EV batteries. The entire production will be supplied to Ford EVs through SK on. The Bécancour Project, under EcoPro’s global strategy, aims to establish a 700,000-ton capacity by 2027, solidifying EcoPro’s position as a prominent battery material company and marking EcoPro’s first project in North America.

The Bécancour Project also stands out as it collaborates with both finished vehicle manufacturer (Ford) and battery cell maker (SK on) to create a value chain, differentiating itself from conventional battery material factories. In April, EcoPro BM inaugurated its cathode material factory in Debrecen, Hungary. The project is progressing according to the planned schedule, including recruitment and equipment installation.

The Debrecen Project, with a total investment of approximately 1.3 trillion won on a 430,000 square meter site, aims for mass production by 2025. It targets an annual production capacity of 108,000 tons of cathode materials, which can accommodate 1.35 million EVs per year. This project involves various EcoPro affiliates, such as EcoPro Innovation, handling the lithium hydroxide process, and EcoPro AP, providing nitrogen and oxygen supply.

Once the EcoPro Hungary facility is successfully established, EcoPro will become the first Korean company producing lithium battery cathode materials to have a manufacturing plant in Europe. EcoPro plans to leverage this as a stepping stone to secure orders from the European finished vehicle market.