SK On, EcoPro BM to build cathode plant with Ford in Canada

Sung Min-suk, chief commercial officer of SK On, speaks during an event announcing the construction of a cathode manufacturing facility in Canada with Ford and EcoPro BM at a hotel in Becancour, Quebec, Canada, Thursday (local time). Courtesy of SK On

By Baek Byung-yeul

SK On will build a cathode manufacturing plant in Quebec, Canada, with U.S. carmaker Ford and Korean cathode maker EcoPro BM in a bid to strengthen the value chain of the electric vehicle (EV) business in core battery materials, battery cells and EVs in North America, the battery cell maker said Friday.

The three companies announced that they will build the cathode manufacturing facility in Quebec, Thursday (local time). The plant will be built on a 278,000 square-meter site in Becancour, Quebec after investing a total of 1.2 billion Canadian dollars ($886.3 million).

“Under the deal, EcoPro CAM Canada, established by EcoPro BM in February, will manufacture cathode active materials and SK On and Ford will become its shareholders once the deal, which is subject to regulatory approvals, is closed,” SK On said.

The cathode-manufacturing joint venture (JV) is expected to be in operation from the first half of 2026 and will have an annual production capacity of 45,000 tons. SK On also said the federal government of Canada and the provincial government of Quebec welcomed the investment decision and promised financial assistance in the order of 644 million Canadian dollars.

“They expressed expectations on job creation and growth the of eco-friendly business while hoping that the facility can play a key role in the battery supply chain,” SK On said.

Seen is a concept image of a joint cathode manufacturing facility for SK On, Ford and EcoPro BM, which is expected to be in operation in the first half of 2026. Courtesy of SK On

With the announcement, the three companies solidify their EV business value chain of cathode, a core material for EV batteries, battery cells and the final product.

The three companies have been partnering with each other for EV business in North America. SK On is making NCM9 batteries with a nickel content of about 90 percent using cathode materials supplied by EcoPro BM. Ford is installing them in its F-150 Lightning electric pickup truck.

Given Canada has a free trade agreement (FTA) with the U.S., the cathode produced at the plant will meet the subsidy requirements of the U.S. Inflation Reduction Act (IRA). Through the IRA, the U.S. subsidizes eco-friendly vehicles with batteries using key battery minerals and components extracted or processed in the U.S. or a country that has an FTA with the U.S.

“Through the cathode JV, the three companies can have a stable supply of battery raw materials in North America,” Sung Min-suk, chief commercial officer of SK On, said. “We will continue to work with our partners to lead the electrification of the global auto market.”