Ford announces $1.2B EV battery material plant with funding from Quebec, feds
Ford Motor Co. and its South Korean companions mentioned Thursday they’re constructing a $1.2 billion manufacturing plant for electrical car battery materials in Quebec with the assistance of presidency funding.
The Quebec and federal governments are protecting about half the fee, every placing up $322 million for the undertaking they are saying is nice for the atmosphere and the economic system.
Ford mentioned the 280,000-square-metre website in Bécancour, Que. is the corporate’s first funding within the province and that it’ll assist construct the regional electrical car ecosystem.
“We’re excited to invest in this new facility to create a vertically integrated, closed-loop battery manufacturing supply chain in North America,” mentioned Ford of Canada chief govt Bev Goodman.
Ford says the cathode supplies facility, positioned on the south shore of the St. Lawrence River midway between Montreal and Quebec City, will create 345 jobs as soon as it is operational in 2026.
Industry Minister François-Philippe Champagne, who has been aggressively courting electrical vehicle-related investments in Canada, mentioned the funding will assist preserve well-paying jobs for years to return.
“This funding reveals as soon as once more that Canada is the inexperienced strategic companion of alternative for world leaders within the automotive trade.”
At a press convention, Quebec Premier François Legault praised the announcement as proof of the province’s rising management within the inexperienced economic system.
Canada has seen a wave of investments within the electrical car transition as governments increase incentives and compete for investments.
Ford dedicated $1.8 billion in 2020 to transition their Oakville, Ont. plant to provide electrical automobiles, whereas general electrical vehicle-related commitments throughout Canada prior to now three years have topped $25 billion, in line with Unifor.
Government help for battery vegetation, together with from Volkswagen and Stellantis, have drawn scrutiny and criticism due to the scale of the subsidies which can be anticipated to run north of $10 billion every as Canada tries to match the beneficiant incentives being supplied within the U.S.
Battery plant subsidies are tied to how a lot the factories produce and wind down over time, as governments look to incentivize the massive and speedy buildup in capability wanted to transition to an electric-based automotive sector.
Funding for the Ford plant in Quebec will come from the federal authorities’s Strategic Innovation Fund, whereas the Quebec portion is coming from {a partially} forgivable mortgage by means of Investissement Québec.
This report by The Canadian Press was first printed Aug. 17, 2023.
