The cathode supplies plant of Ultium CAM, a three way partnership between POSCO Future M and Common Motors, is beneath building in Quebec on this undated picture. Courtesy of POSCO Future M
Korean battery companies working in Canada expressed issues Monday about U.S. President Donald Trump’s plan to begin imposing 25 p.c tariffs from Tuesday on imports from the North American neighbor.
Given a trilateral free commerce pact between the US, Canada and Mexico, the battery companies established their manufacturing bases within the Canadian provinces of Quebec and Ontario over the previous couple of years to supply minerals there and provide their merchandise to adjoining American automotive factories within the Rust Belt.
Trump’s tariff plan, nonetheless, has brought on nice uncertainties about their North American enterprise, triggering a pointy decline of their inventory costs throughout Monday’s buying and selling session.
POSCO Future M, the battery supplies unit of POSCO Group, mentioned Monday that it’s going to preemptively brace for potential dangers, mentioning the launch of a brand new U.S. administration and unsure international insurance policies.
In 2022, the Korean firm established a Canadian three way partnership named Ultium CAM with Common Motors and began the development of the three way partnership’s cathode supplies plant in Quebec.
With a plan to provide 30,000 tons of cathode supplies yearly, the development is scheduled to be accomplished by the tip of this yr, a couple of yr later than initially deliberate, because of the sluggish demand for electrical autos (EV).
„We determined to enter an emergency mode,“ POSCO Future M mentioned in a press launch after asserting that its 2024 working revenue declined 98 p.c year-on-year to 700 million gained ($477,000) because of the working lack of 36.9 billion gained from its battery supplies enterprise.
LG Vitality Resolution (LGES), one among Korea’s three main EV battery makers, additionally addressed this difficulty.
The corporate arrange a Canadian three way partnership named NextStar Vitality with Stellantis in 2022 and commenced mass manufacturing on the three way partnership’s Ontario plant late final yr to provide battery modules to the U.S.
„It’s true that deliberate coverage adjustments in North America have brought on grave issues,“ LGES CEO Kim Dong-myung mentioned in a letter to workers on Monday, though he expressed confidence in overcoming difficulties.
SK On, one other main battery producer, and EcoPro BM, a battery supplies producer, have additionally pushed forward with the joint building of a cathode supplies plant in Quebec with Ford Motor.
Samsung SDI, one other battery maker, invested in a Canadian nickel mining firm.
Solus Superior Supplies can also be constructing a plant in Canada to provide copper foil for EV batteries.
These firms have but to reveal their countermeasures towards the escalating tensions between the U.S. and Canada.
Simply earlier than the 25 p.c tariffs took impact, Trump instructed reporters that he would have a telephone name on Monday (native time) with Canadian Prime Minister Justin Trudeau, though the U.S. president denied expectation of „something very dramatic.“
