UPDATED: General Motors Co. (GM) has confirmed its joint venture with South Korean battery materials and chemicals company POSCO Future M continues to move forward, with production of battery materials from the Becancour, Que. facility scheduled to start in early 2026.

In an email sent in reply to a request from Sustainable Biz Canada, a GM (GM-N) spokesperson confirmed GM's commitment to the facility. The email also confirmed the anticipated start of production of the cathode active materials (CAM) had been delayed from the first half of 2025.

"Construction and commissioning of the Ultium CAM facility, GM’s joint venture with POSCO Future M, is progressing with production expected to begin in early 2026,” the spokesperson said.

The joint venture, named Ultium CAM, is set to produce 30,000 tonnes of CAM per year in Becancour, which will be used to make hundreds of thousands of batteries for GM’s electric vehicles (EVs).

GM has pledged to sell only electric light-duty vehicles by 2035, which will demand a substantial ramp-up of battery production.

In a sign of its partner's commitment to Ultium CAM, The Korea Herald recently reported POSCO Future M's $483-million investment into the joint venture, despite strident headwinds to the EV and electrification sectors by U.S. President Donald Trump's administration.

The Trump administration continues to impose and threaten additional stiff tariffs on Canadian exports to the U.S., which could deeply impact the auto sector. Canada is also imposing retaliatory tariffs in the ongoing battle.

Ultium in Becancour

Announced in 2022, the Ultium CAM facility in Becancour at the time represented an estimated $500 million in investment, with the Canadian and Quebec governments both supporting the project. A year later, a second phase for the project was unveiled, which planned to add increased CAM production capacity and a precursor CAM facility.

The investment figure was updated to over US$1 billion.

“The recent increase in investment was made by POSCO Future M Canada to secure funding for Ultium CAM’s cathode material business,” an Ultium spokesperson told Sustainable Biz Canada in an email. The funds will be used for construction of the facility, equipment improvements and supporting operational infrastructure.

The project is expected to create 200 jobs.

The Korea Herald reported POSCO Future M’s investment is being allocated toward the plant's ongoing construction, facility enhancements, phased expansion and infrastructure equipment.

POSCO Future M told Business in Korea in September 2024 there had been construction delays at the Quebec facility. The Ultium spokesperson confirmed to Sustainable Biz Canada that "local conditions" - such as permitting and site preparation - were responsible for the delays.

Canada’s uncertain battery sector

The sustained support for Ultium CAM comes as the fledgling Canadian battery sector faces a rocky path. The Canadian government and provincial governments have invested over $50 billion into the EV supply chain to build a cornerstone of the country’s clean energy economy.

But the plan has hit several bumps that are shared by Ultium CAM.

Northvolt declared bankruptcy in the U.S., creating deep concerns about its plan for a $7-billion cell manufacturing and CAM production gigafactory near Montreal. Ford withdrew from its partnership with South Korean companies SK and EcoPro on a $1.2-billion battery plant in Becancour. Umicore and E-One Moli have also hit the brakes on their projects in Ontario and British Columbia, respectively.

And those announcements were made before the U.S. government put further stress on the sector. Trump administration policies have put a chilling effect on clean energy, impacting EVs and batteries. Promised tariffs on most Canadian goods going to the U.S. would impact the economics of GM’s battery supply chain.

GM did secure a one-month exemption to the tariffs, however, though that situation has been evolving on an almost day-to-day basis.

EV adoption also has not been progressing at the speed some companies have hoped. Though adoption is steadily increasing in Canada and the U.S., EcoPro told Radio-Canada construction on its factory was paused because of uncertainty surrounding EV demand and changing preferences for battery design.

So far, however, some projects have continued to progress. Another major Ontario facility, the St. Thomas battery factory in development by Volkswagen subsidiary PowerCo SE, remains under construction and on track to operate by 2027.

Sean Dyke, CEO of the St. Thomas Economic Development Corporation, told CTV News PowerCo is continuing “to go strong” despite the trade war and may not be as impacted in the short-term because production is scheduled to start in 2027.

“Although there may be some adjustments in speed due to the so-called ‘chasm,’ there is no disagreement that EVs are a future growth industry,” the Ultium spokesperson told Sustainable Biz Canada. Though some projects may experience delays, there are no plans to scale down the long-term secondary battery strategy.

“The North American EV market remains one of the most promising globally. Therefore, the investment in Quebec, Canada, is proceeding as planned.”

EDITOR'S NOTE: This article has been updated with additional comments from Ultium CAM.