Ontario Expects Another Major EV Battery Plant Amid Auto Sector Race

Ontario expects to land another major electric vehicle battery plant commitment soon as Canada’s most populous province races to secure its auto sector’s future amid a narrow window of opportunity.

Ontario Economy Minister Vic Fedeli said the province is confident it will land at least one more out of three current prospects it is courting. “The window in EV is going to close very, very shortly,” Fedeli said in an interview. “It’s starting to close now, meaning that everybody needs a dance partner.”

The province has already scored major battery plant investments from Stellantis NV, Volkswagen AG and Honda Motor Co. with the help of billions in government incentives.

Ontario has jumped into the global competition deploying public money to lure electric vehicle manufacturers. It argues it must act swiftly to maintain auto assembly operations amid an aggressive push from the U.S. and China. The strategy also aims to secure the long-term viability of existing plants that may wind down gasoline-powered production.

READ: Panasonic Warns of Weakness in Auto Battery Business Amid EV Slowdown

For the estimated C$15 billion Honda deal, federal and provincial governments provided up to C$5 billion in incentives including tax credits and capital cost support. Canada matched enormous U.S. subsidies to get Volkswagen and Stellantis’ battery plant commitments.

The EV investment pursuit comes as global electric vehicle demand slows after years of breakneck growth. Still, Fedeli argues there is “long-term life” in the investments given robust North American sales and government mandates promoting EV adoption. Ontario’s Ford Motor Co. however recently delayed plans for electric vehicle production at its Oakville plant until 2027, citing a need for stronger consumer demand.


Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

New Found Gold: The Strategic Maritime Resources Purchase

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Mr. X And Phoenix Kiss: Who Are These Characters In Doug Ford’s Greenbelt Fiasco?

In 2022, developer Peter Tanenbaum embarked on a mission to develop his 86-acre Greenbelt land...

Tuesday, September 5, 2023, 04:27:00 PM

Glencore and Stellantis Back $1B SPAC Deal for Nickel and Copper Mines in Brazil

Global mining company Glencore, automaker Stellantis, and Volkswagen’s battery unit PowerCo are supporting a $1...

Thursday, July 13, 2023, 12:55:20 PM

PowerBand Solutions Secures US$2.0 Billion In Lease Lines For EVs

PowerBand Solutions (TSXV: PBX) this morning revealed that it has secured two additional credit facilities....

Tuesday, May 4, 2021, 08:05:20 AM

Ontario Introduces Legislation To Protect Consumers From “Unfair Business Practices”

The Ontario government is taking a significant step by introducing new legislation aimed at fortifying...

Saturday, October 28, 2023, 02:35:00 PM

China Rare Earth Exports Fall Dramatically in 2020, Positively Impacting Energy Fuels Inc

Last week, China announced that it exported only 35,448 tonnes of rare earth materials, down...

Saturday, January 23, 2021, 01:24:00 PM