According to a statement from a spokesperson for Vale Base Metals, the company no longer requires nickel sulfate in Quebec due to GM’s timeline changes for its Ultium Cam battery project in Bécancour. The spokesperson stated, “As a result, Vale Base Metals is canceling the nickel sulfate plant project.”
Canadian public broadcaster Radio-Canada reported that the second phase of the Ultium Cam project, a joint venture between GM and South Korean steelmaker Posco, has been suspended indefinitely. Ultium Cam representatives did not comment on the matter.
If realized, Vale’s facility in Bécancour would have been the first nickel sulfate plant in the North American market to be established with entirely domestic production. The plant aimed to process nickel sulfate used in the production of precursor cathode active materials for lithium-ion batteries.
Vale and General Motors will continue cooperation
Despite the project’s cancellation, Vale emphasized that it will continue its collaboration with GM to supply Canadian-sourced nickel for the North American battery supply chain. The company operates nickel mines and processing facilities in Ontario, Manitoba, and Newfoundland & Labrador.
Vale and GM signed a long-term supply agreement in November 2022. Under the agreement, Vale was to produce 25,000 tons of battery-grade nickel sulfate annually at the Bécancour facility to be used in GM’s Ultium battery cathodes.
Another setback for Quebec’s battery investments
The cancellation of the project dealt another blow to Quebec’s efforts to strengthen its electric vehicle battery industry. In recent months, the bankruptcy of Swedish battery manufacturer Northvolt and the collapse of a planned CAD 7 billion factory near Montreal have also disrupted the province’s ambitions.
Quebec’s Economy Minister Christine Fréchette stated last month that the government suffered a significant loss after the cancellation of CAD 270 million in financing previously committed to the project.
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