General Motors and POSCO plan to invest more $600 million in a new chemical battery materials facility in Becancour, Que. (AP Photo/Paul Sancya, File) (ASSOCIATED PRESS)
General Motors’ (GM) $600 million joint venture to build a battery materials facility in Quebec is the “tip of the iceberg” when it comes to the Detroit automaker’s plans in Canada.
Speaking at the EV Innovation & Technology Conference 2024 event in Toronto on Tuesday, Sarah Goldfeder, director of government relations and corporate affairs for General Motors Canada said, “My dream is that every vehicle that General Motors makes has a piece of Canada in it.”
General Motors and South Korean steel-maker POSCO announced a plan in 2022 to build the new chemical battery materials facility in Becancour, Que. The companies expect to invest even more than $600 million in the project. Last May, they said construction is underway, with initial production expected in the first half of 2025. Canada’s federal government and the province of Quebec will each provide about $150 million in financial assistance.
“We’ve got the investment in Quebec. To me, that’s the tip of the iceberg,” Goldfeder said in a panel discussion about new production hubs. “I think what the company wants to see is the potential in Becancour for that project, which is now a CAM facility, to be built out into an entire ecosystem, from extraction, all the way through to processing,” added Goldfeder, using the acronym for cathode active material.
Goldfeder did not specify when such a decision could be made, or how GM would assess the Becancour facility’s potential for expansion. She did say GM’s EV-oriented presence in Canada hinges on “what’s available to us.” Last year, the company announced a plan to produce more than 400,000 EV drive units per year in St. Catharines, Ont. GM’s Ingersoll, Ont. plant currently builds electric delivery vans.
“The question then becomes, how can Canada step up to the plate,” Goldfeder asked. “There are questions there that need to be answered by the federal government, by provincial governments, by utilities, by the workforce, by the universities, and by us, the companies. But it has to be a joint effort.”
Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli touted his province’s prowess as a battery-making powerhouse at Wednesday’s conference. Over the past year, Ontario has lured multi-billion dollar investments from companies like Volkswagen (VWAGY), Stellantis (STLA) and LG.
“Last year, Ontario alone created more manufacturing jobs than all 50 U.S. states combined. That’s the power that we are pumping out of Ontario,” he said. “This is going to be a very pivotal year.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
