The governments of Canada and Ontario have invested roughly $1 billion in an EV battery parts facility

The federal and provincial governments will invest nearly $1 billion in an electric vehicle battery component facility in eastern Ontario. The Umicore facility in Loyalist Township will produce cathode active materials and precursor cathode active materials worth up to $2.761 billion. Government ministers revealed that Ottawa will provide $551.3 million to the project, while Ontario will contribute up to $424.6 million in capital expenses.

Umicore’s investment, according to Ontario Premier Doug Ford, is a major vote of confidence in Ontario. “The plant is going to create 600 direct jobs and I always say in the auto sector, there’s seven spinoff jobs for every one job that we see here,” he went on to explain. “There will be tens of thousands of jobs across the province.” Indeed, this will stimulate the economy and activities in the mining, auto, manufacturing, and service sectors.”

According to Federal Innovation, Science, and Industry Minister Francois-Philippe Champagne, the Umicore factory in Belgium will provide significant economic advantages to Ontario and boost Canada’s position as the “green supplier of choice.” “It’s about jobs, it’s about growth, it’s about opportunities and we are really together building Ontario as an economic powerhouse,” he told reporters. The factory is planned to manufacture enough battery materials to support 800,000 electric vehicles every year, according to Ontario Economic Development Minister Vic Fedeli.

Umicore CEO Mathias Miedreich stated that it marks the beginning of the company’s North American battery materials supply chain. “This plant will be unique, it will be a one of its kind because it will combine cathode active materials with precursors and that’s the first plant that will do that in North America,” he went on to say. In addition, two electric car battery plants are under construction in Ontario: Volkswagen in St. Thomas, Ont., and Stellantis LG in Windsor, Ont.