POSCO Future M is investing ₩490 billion ($343 million) in its Canadian subsidiary to support the completion of a high-nickel cathode materials plant being built in partnership with General Motors.
The South Korean company announced Sunday that the cash injection would go entirely toward the Quebec facility being constructed by its wholly-owned subsidiary, POSCO Future Materials. The plant, developed through the “Ultium CAM” joint venture established with GM in 2022, is expected to begin operations in May with an annual production capacity of 30,000 tons.
This latest contribution brings POSCO Future M’s total investment in the Ultium CAM venture and associated cathode plant to approximately ₩1.41 trillion. The strategic move aligns with the company’s portfolio restructuring efforts aimed at prioritizing advanced materials production.
As part of this strategy, POSCO Future M is also divesting its Gumi cathode materials plant in Korea to Mirae Advanced Materials. The company selected Mirae as the preferred bidder following a competitive process that began last year.
The sale represents a deliberate shift away from lower-value product segments as POSCO Future M concentrates resources on cutting-edge facilities like the Canadian plant. This portfolio realignment reflects the company’s ambition to strengthen its position in the high-nickel cathode materials market, a critical component for electric vehicle batteries with higher energy density and extended range capabilities.
The timing coincides with global automakers’ accelerating transition to electric vehicles and increasing demand for advanced battery materials.
