A consortium of Ford Motors and South Korean corporations announced plans to build a C$1.2 billion ($887 million) plant in Becancour, Quebec, to make electric vehicle (EV) battery materials.

Eventually, the factory will generate 45,000 tonnes of cathode active materials per year for Ford EVs. Ford described the materials as high-quality Nickel Cobalt Manganese for rechargeable batteries aimed at increased performance and range. The factory is scheduled to open in the first half of 2026, providing over 345 jobs.

“This cathode facility will supply the material that goes into Ford’s future EVs in North America, specifically some of our future trucks,” Lisa Drake, Ford vice president for EVs, told reporters.

According to the announcement, the federal government of Canada will provide the consortium with a conditional loan of C$322 million, while Quebec will contribute the same amount as a partially forgiving loan.

As the world attempts to reduce carbon emissions, Canada, which has a big mining sector for minerals such as lithium, nickel, and cobalt, is attempting to entice companies involved in all stages of the EV supply chain through a multibillion-dollar green technology fund.