NEWS

Canada to invest $644 million in Ford battery materials plant in Quebec

17 August 2023

Canada will be investing $644 million in a new battery materials production plant to be built in Becancour, Que., by automaker Ford Motor Co. and South Korean companies EcoProBM and SK On Co. The federal government and the province of Quebec will each provide conditional loans of $322 million to build the plant, which is valued at more than $1.2 billion and is expected to create over 345 jobs, the federal government said in a press release on Aug. 17.

“We are strengthening Quebec’s key position in the electric vehicle (EV) supply chain, while continuing to build Canada’s battery ecosystem,” industry minister François-Philippe Champagne said in a statement. “This investment is good for the environment and for the economy, and it will help maintain well-paying jobs for years to come.”

Quebec Premier François Legault said the announcement is part of the province’s plan to make a mark in a “new economy” where the world is transitioning away from the use of fossil fuels.

The new facility will annually produce an average of 45,000 tonnes of cathode active materials. These materials will be part of the batteries that Ford will use to build future EVs. The facility is expected to begin operating in the first half of 2026.

The announcement is part of Canada’s goal to build a new battery industry that will power electric vehicles, the demand for which is expected to increase in the next decade as countries look for ways to shift away from fossil fuels.

Analysts said these steps are also part of Canada and the United States’ overall goal of redesigning its supply chain, which took a hit during the pandemic, away from China and towards friendlier nations.