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.

Selkirk Copper Mines — sponsored Sponsored · Selkirk Copper Mines

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

Where Gold Investors Will Make the Biggest Money | Kevin Smith – Crescat Capital

This 100 Year Old Silver Mine Keeps Getting Bigger | Oliver Turner – Americas Gold and Silver

They’re Uncovering an Entire District of Gold | Michael Bennett – Altamira Gold

Recommended

Homeland Nickel Signs Binding Offtake With Westwin for 20,000 Tonnes of Concentrate a Year

Golden Cariboo’s First Quesnelle Resource Estimate Tallies 1.19 Million Gold Equivalent Ounces

Related News

Magna International Announces Driver Assistance Deal with EV Manufacturer Fisker

As the demand for electric vehicles continues to accelerate, an increasing number of automobile manufacturers...

Tuesday, January 5, 2021, 11:59:00 AM

Start-Up EV Maker Rivian May Be Worth Significantly More Than Lucid Group

In light of the Lucid Group, Inc.’s (NASDAQ: LCID) share performance last week to news...

Wednesday, November 3, 2021, 03:36:00 PM

Domino’s Pizza Signs Deal With GM For EV Delivery Fleet

Domino’s Pizza (NYSE: DPZ) is the latest American company to begin its push towards using...

Tuesday, November 22, 2022, 11:37:00 AM

Hertz And BP Team Up To Build Network Of Charging Stations Across The US

Hertz (NASDAQ: HTZ) and BP (NYSE: BP) announced a deal to build a nationwide network...

Wednesday, September 28, 2022, 11:43:00 AM

Ford CEO Isn’t Worried About Tesla’s Fancy Cybertruck: “I Make Trucks for Real People”

During an interview on CNBC’s Mad Money, Ford CEO Jim Farley dismissed concerns that Tesla’s...

Saturday, June 24, 2023, 03:24:00 PM