New eastern Ontario plant to add hundreds of jobs, create battery components

Federal and provincial officials helped breakground in Loyalist Township Monday on a multi-billion-dollar plant they say will produce components for electric vehicle batteries and bring hundreds of jobs to the region.

The project from Umicore Rechargeable Battery Materials Inc.carries a total price tag of up to $2.76billion. Based on its full scope, the Canadian government is investing up to $551.3 million, while the province will pay up to $424.6 million, according to a news release fromInnovation, Science and Economic Development Canada.

The Umicore CEO said he's "delighted" with the financial backing from different levels of government.

"I do promise that this plant in Loyalist will not onlydeliver a return on investment. It will be much more,"Mathias Miedreichtold those gathered at the site, adding the company will contribute to the community and economy.

Loyalist Township is located just west of Kingston, Ont.

The project is expected to roll out in multiple stages, the first of which the government said will result in 600 new jobs. Another 700 co-op positions will be created throughout the project, the governmentstated.

Officials described the plantas the "first of its kind in North America," adding it will produce cathode active materials(a component of the batteries used inelectric vehicles) andprecursor cathode active materials on an industrial scale.

The full project could make enough battery materials to support the production of more than 800,000 EVs per year, the government said, adding the process will use Canadian materials including nickel, lithium and cobalt.

Ontario Premier Doug Ford was joined by Vic Fedeli, Ontario's minister of economic development, job creation and trade at Monday's announcement.

Latest investmentin electric vehicle industry

Ford described the project as further evidence of the province putting the "auto sector back on the map," while creating jobs and ensuring "cars of the future" will be made in Ontario.

The announcement took place in a tent surround by earth that had been scraped clear by bulldozers.

Ford said the site covers more than 141 hectares and called thecoming facility "world class."

Franois-Philippe Champagne, the federal minister of innovation, scienceand industry, said in the news release the projectis "strengthening Canada's position as the green supplier of choice."

At one point during his speech, Champagnepointed to Loyalist Township Mayor Jim Hegadorn.

"If anyone wants to see what a multi-billion-dollar smile looks like, just look at the mayor," he joked.

Hegadornsaid the project represents aneconomic boostfor the region.

"Our community has been energized and eager to welcome them to Loyalist," he said. "Residents and businesses alike are anxiouslywatching the progression and waiting for this project's completion."

Miedreich, Umicore's CEO, told reporters the site is expected to start production in 2026.

The announcement is the latest in a series of large investments from provinces and the federal government to support Canada's burgeoning electric vehicle industry.

Such projects have faced questions, given the amount of public money involved, but experts say public financing is crucial to compete against cut-throat international competition.

'We never win on the money,' says minister

Greig Mordue, chair of advanced manufacturing policy at McMaster University's school of engineeringand a former Toyota executive, previously told CBCthe auto industry has a long history of being propped up by the government.

"Our industrial policy now consists of one tool and that is a chequebook, and that's where we are today," he said.

Champagne pushed back against that idea following the announcement on Monday, saying he believes the investment will pay dividends for generations to come.

"I would say we never win on the money," he said.

"We win because we have the best talent. We win because we have the critical minerals that are needed, [and] not only thecritical minerals, but proximity to resources, market and assembly line."