The Financial Post reports in its Saturday edition that General Motors and a partner have paused the second phase of a cathode factory in Quebec, resulting in the cancellation of a nickel sulphate project by Vale SA. A Bloomberg dispatch to the Posts says GM agreed in 2022 to buy nickel supplies from the Brazilian miner as part of a strategy to build up its battery supply chain for electric vehicles. But weaker-than-expected demand and U.S. policy changes that make EVs less attractive have prompted companies to reconsider investment projects. The carmaker said this week it is incurring $1.6-billion (U.S.) in charges tied to its pullback from EVs. Realigning EV capacity will lead to non-cash impairment and other charges of $1.2-billion (U.S.), the carmaker said in a regulatory filing, while the rest of the costs relate to cancelling contracts and settling commercial arrangements linked to EV investments. GM's partner in the Quebec venture is South Korea's Posco Future. The first phase is on track to begin producing material for EV batteries next year. Vale said in a separate statement that GM's move means it will not need nickel sulphate for now. Vale's nickel sulphate plant project was expected to cost $325-million.