SK On, EcoPro BM and Ford will jointly pour 1.2 billion Canadian dollars ($886 million) to construct a cathode plant in Quebec, Canada, the companies announced Thursday.

The Canadian federal government and the local government in Quebec promised financial support worth 644 million Canadian dollars for the project.

Located in an industrial park in Bécancour, southern Quebec, the 278,000-square-meter (68.7-acre) joint plant is scheduled to begin operations in the first half of 2026 with the capacity to produce 45,000 tons of cathode active materials per year, which will be used for electric vehicle batteries. The Bécancour project is expected to create at least 345 jobs in the region.

EcoPro CAM Canada, EcoPro BM’s local entity, will run the production facility, while SK On and Ford will take part as stakeholders for the project, further extending the existing partnership. The three companies had signed the letter of intent in July last year for the new cathode manufacturing facility.

EcoPro BM, the battery material supplier, is currently providing SK On with high-performance, high-nickel cathode materials. SK On, the battery maker, supplies NCM9 — nickel, cobalt and manganese  — batteries for Ford Motor’s F-150 Lightning electric pickups.

Cathodes produced at the new plant will be subject to U.S. Inflation Reduction Act (IRA) benefits. In order to qualify for $3,750 of the credit under the IRA subsidy program, 40 percent of the critical-mineral value of the vehicle’s battery have to come from the United States or countries with which the United States has signed FTAs, which include Canada.

The announcement was made on Thursday in Bécancour, with the companies’ representatives and officials from the Canadian and Korean governments in attendance, including the Canadian Minister of Innovation, Science and Industry, François-Philippe Champagne, and Quebec Premier François Legault.

“We’re excited to invest in this new facility to create a vertically integrated, closed-loop battery manufacturing supply chain in North America designed to help make electric vehicles more accessible for millions of people over time,” said Bev Goodman, president and CEO, Ford of Canada.

“Through the cathode JV [joint venture], the three companies can have a stable supply of battery raw materials in North America,” said Sung Min-suk, SK On chief commercial officer.

“The upcoming Canadian plant, which follows our previous project in Hungary, will provide EcoPro BM with new opportunities to take a step forward to become a global player in cathode materials,” said EcoPro BM CEO Joo Jae-hwan.

BY SHIN HA-NEE, SOHN DONG-JOO [shin.hanee@joongang.co.kr]