North American Cathode Supply Buildout

This shift shows that battery materials are no longer treated as a commodity that can be shipped in from Asia, they are being pulled next to North American cell plants and automakers. LG Chem is building a large cathode plant in Tennessee, while GM and POSCO Future M set up a cathode joint venture in Quebec, and Ford, SK On, and EcoProBM launched a cathode materials project in the same province. That brings refining and cathode mixing closer to where batteries are assembled.1 2 3 4 5

• The concrete bottleneck is cathode active material, the powder that goes on the battery’s positive electrode and drives a large share of cell cost. LG Chem said its Tennessee plant is meant to supply North American EV production directly, not just export from Korea or China.1 2
• This buildout follows the auto supply chain. GM partnered with POSCO Future M in Quebec, and Ford backed a separate Quebec cathode plant with SK On and EcoProBM. In practice, automakers are helping anchor the materials plants that feed their own battery factories.3 4 5
• For Redwood, these entrants are not just recyclers, they are scaled virgin materials producers moving downstream into the same regional market. That means future competition is likely to center on who can offer North American battery makers the cheapest qualified cathode feedstock with the most reliable local supply.6 7 1 3 4

The next step is a full regional stack, from mined or recycled metals into precursor, cathode, and finished cells on the same continent. As more Asian incumbents localize production, Redwood’s edge will depend less on being local by itself and more on turning recycling into a cheaper and more secure input stream for those same factories.6 7 1 3