The Financial Post reports in its Saturday, Oct. 18, 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.
A Bloomberg dispatch to the Post reports that 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. However, weaker-than-expected demand and U.S. policy changes that make EVs less attractive have prompted companies to reconsider investment projects. "GM's long-term strategy is to build a profitable EV business in North America and in light of evolving market dynamics, GM and our partners will pause the second phase of the project," which involved increasing production capacity of cathode active material, a GM spokesman said. Vale said GM's move means it will not need nickel sulfate for now, and as a result "must terminate its nickel sulphate plant project." Becancour, Que., has emerged as an EV battery hub, but a number of projects have now been delayed, including a more than $1.2-billion cathode plant of the battery-materials maker Ecopro Group. Ford was initially part of that project, but pulled out.
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