The federal and Ontario governments have jointly announced an investment of nearly $1 billion into an electric vehicle battery component plant in eastern Ontario. The Umicore facility, with a total investment of up to $2.761 billion, will focus on producing cathode active materials and precursor cathode active materials crucial for electric vehicle batteries. Ottawa is contributing $551.3 million to the project, while Ontario will invest up to $424.6 million in capital costs. Ontario Premier Doug Ford hailed Umicore's investment as a significant vote of confidence in the province, highlighting the creation of 600 direct jobs and the anticipated multiplier effect across various sectors.
Federal Innovation, Science, and Industry Minister François-Philippe Champagne emphasized the economic benefits of the Umicore facility, stating that it will strengthen Canada's position as a leading supplier of green technologies. Production at the plant is slated to commence in early 2026, with the capacity to support the production of battery materials for 800,000 electric vehicles annually, according to Ontario Economic Development Minister Vic Fedeli.
Umicore CEO Mathias Miedreich noted the strategic significance of the plant, describing it as the beginning of the company's battery materials supply chain in North America. The facility will be unique, combining cathode active materials with precursors, making it the first of its kind in North America. The announcement comes amid a broader push to bolster Ontario's electric vehicle manufacturing capabilities, with additional battery plant projects underway, including those by Volkswagen in St. Thomas and Stellantis LG in Windsor. This collective investment underscores the commitment of both levels of government to promote sustainable mobility and strengthen Canada's position in the rapidly evolving electric vehicle industry.
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