Breaking News! CNY 6.3 Billion Battery Materials Factory Suspends Construction!

According to foreign media reports, Korean battery materials manufacturer EcoPro BM announced in early June that it would suspend construction of its CAD 1.2 billion (approximately RMB 6.3 billion) battery materials factory in Becancour, Quebec, Canada. In a statement, EcoPro BM noted: “The electric vehicle and battery industries continue to face numerous uncertainties, and challenges arising from U.S. tariff policies have severely impacted the company’s key decision-making processes.” EcoPro BM is a specialized producer of lithium-ion cathode materials, established in May 2016 as a subsidiary of Korea’s EcoPro. Its primary products include NCA and NCM cathode materials. Timeline of the Canadian Cathode Materials Plant: The Canadian cathode materials plant is a joint venture among EcoPro BM, SK On, and Ford. In August 2023, the three companies announced plans to invest CAD 1.2 billion to build a battery materials factory in Becancour, Quebec. The facility was expected to produce 45,000 tons annually of nickel-cobalt-manganese (NCM) cathode active material—sufficient to supply approximately 225,000 Ford electric vehicles. The plant was originally scheduled to begin mass production in the first half of 2026.

Battery Giant: Major Customer Terminates Collaboration

In 2024, project suspensions—and even cancellations—have become commonplace. Just last week, foreign media reported that Ford Motor Company has withdrawn from the battery materials joint venture with EcoPro BM and SK On in Becancour. Ford’s withdrawal stems from its own underperforming EV business. A spokesperson for Ford Canada stated in a press release: “After evaluating changes in EV technology, costs, and business requirements, we have decided not to join this joint venture as an equity partner.” 01 A Rocky Road—Ultimately Unsuccessful The joint venture was officially launched in August 2023, when Ford, EcoPro BM, and SK On jointly announced their CAD 1.2 billion investment to build a lithium-ion cathode materials factory—named “EcoPro CAM Canada.” According to the original plan, the project would produce 45,000 tons annually of nickel-cobalt-manganese (NCM) cathode active material—enough to supply roughly 225,000 Ford EVs—and commence operations in the first half of 2026. Upon completion, the three companies aimed to establish an integrated North American value chain spanning cathode materials, batteries, and electric vehicles. Local governments strongly supported the project. Canada’s federal and Quebec provincial governments pledged to cover approximately half of the initial project costs, committing a total loan assistance package of CAD 644 million. Unfortunately, just one year after the official announcement, the project has already been suspended twice. The first suspension occurred in April this year, due to EcoPro BM’s difficulties in selecting a construction contractor; work only resumed one month later. The second suspension took place in August, citing Ford’s revised production timeline for its key vehicle models—which necessitated “redesigning the factory.” During this period, Ford implemented multiple strategic adjustments—including canceling its plan to establish an EV center at its Oakville, Ontario plant—and repurposing its Canadian EV manufacturing facility to produce internal-combustion-engine vehicles instead. Thus, although EcoPro BM persistently urged “immediate resumption” of construction, Ford remained unresponsive—a likely signal of its ultimate decision. 02 Partners Struggling Amid Broader Industry Headwinds As overseas EV development falters, numerous industry giants are facing mounting pressure—and the three partners involved in this project are no exception.

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EcoPro BM swings to loss as EV demand stalls

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