General Motors (GM) has teamed up with POSCO Chemical to build a new facility in Bécancour, Quebec. The two have also partnered with the governments of Canada and Quebec to build the $400 million facility that is to produce cathode active material (CAM).GM shares fell 6.06% to close at $39.83 on March 7.
General Motors is a U.S. company that designs, manufactures, and sells cars, trucks, and automobile parts. General Motors’ upcoming earnings report for Q1 2022 is scheduled for April 26, 2022.
CAM Facility
Late last year, the two companies announced plans to create a joint venture of which POSCO would be the majority owner. Construction of the cathode processing facility is poised to commence immediately and will result in the creation of 200 jobs.
The cathode active material to be produced in the facility is to be used in Ultium batteries expected to power General Motors’ electric vehicles (EV). Additionally, there is a provision to expand the facility in the future to meet growing needs as General Motors pursues EV supply chain projects.
The new facility should allow General Motors to lead the EV battery supply chain in the region as it also moves to launch Canada’s first full EV manufacturing plant in Ingersoll, Ontario. The company plans to have the capacity to produce 1 million electric vehicles in North America by the end of 2025.
Stock Rating
Last month Jefferies analyst Philippe Houchois reiterated a Hold rating on General Motors Stock with a $53 price target, implying 33.07% upside potential to current levels.
Consensus among analysts is a Moderate Buy based on 10 Buys and 5 Holds. The average General Motors price target of $74.27 implies 86.47% upside potential to current levels.
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