General Motors (GM) and its joint venture partner, South Korea's Posco Future M, have paused the second phase of a cathode plant in Quebec, which has led to Vale (VALE) canceling plans for a nickel sulfate facility, Bloomberg News reported Thursday, citing General Motors and Vale.

General Motors had agreed in 2022 to source nickel from the Brazilian miner to support its electric vehicle, or EV, supply chain, the report added.

As part of its EV pullback, General Motors will take $1.6 billion in related charges, the company said recently. The report noted company saying that its long-term goal is to have a profitable EV business in North America but "in light of evolving market dynamics, GM and our partners will pause the second phase of the project."

The Quebec project will still complete its first phase, which is expected to start production next year, the company told Bloomberg.

"GM has changed the timing of its project in Becancour and will not need nickel sulphate in Quebec at this time. As a result, Vale Base Metals is cancelling its nickel sulphate plant project," Vale Base Metals told MT Newswires. It added that it will continue to work with GM on their partnership to supply Canadian nickel into GM's North American supply chain.

General Motors and Posco Future M didn't immediately reply to MT Newswires' requests for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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