Ford Cathode Plant in Bécancour: Project Restarted After One-Month Pause
In a surprising turn of events, the Ford cathode plant and its partners in Bécancour, which had been at a standstill for about a month, are now back in action. Workers have resumed their tasks to renovate the floors, structures, and walls of three buildings by November, as confirmed by Minister of Economy, Energy, and Innovation Pierre Fitzgibbon.
The decision to suspend the construction in April raised eyebrows, especially after several floors had already been erected. The $1.2 billion project, co-financed by Quebec and Ottawa, faced financial challenges from Ford and South Korean companies EcoPro BM and SK On.
According to sources, a subsidiary of Groupe Canam has taken over as the project’s main contractor, replacing AtkinsRéalis (formerly known as SNC-Lavalin). The partners had cited the need to analyze the best technological options for the project, particularly in terms of chemical processes for cathode materials and mechanical arrangements for equipment.
Despite the halt, the partners expressed their commitment to completing the construction of the plant. While the joint venture between Ford, EcoPro BM, and SK On has yet to be formalized, discussions are ongoing to optimize operations. The completion of building works, including beam installations and wall constructions, is a top priority for the partners.
In a separate development, the joint venture agreement between the three promoters remains unsigned, even nine months after the project was announced. EcoPro BM still stands as the sole indirect sponsor of the EcoPro CAM Canada limited partnership. Ford and SK On are expected to join as sponsors once negotiations are finalized.
Unlike the Ford project, the other cathode plant construction in Bécancour led by General Motors and POSCO is proceeding smoothly. Ultimate Cam, the entity formed to operate the complex, has both companies as shareholders.
Financial Challenges and Technological Decisions
The decision to pause construction at the Ford cathode plant in Bécancour was driven by the need to assess the best technological options for the project. The partners, including Ford, EcoPro BM, and SK On, faced financial challenges that prompted a reevaluation of the chemical processes and mechanical arrangements needed for cathode production. Despite the setbacks, the partners remain committed to completing the construction and optimizing operations to ensure the success of the project.
Delays in Joint Venture Formation
Nine months after the announcement of the Ford cathode plant project in Bécancour, the joint venture agreement between the partners remains unsigned. EcoPro BM continues to be the sole indirect sponsor of the limited partnership, with Ford and SK On expected to join once negotiations are finalized. In contrast, the cathode plant project led by General Motors and POSCO is moving forward smoothly, with both companies actively involved in the project’s development and operation.
In conclusion, the restart of the Ford cathode plant project in Bécancour marks a significant development after a one-month pause due to financial challenges and technological decisions. The partners are now focused on completing the construction and optimizing operations to ensure the success of the project in the long run.