New $1.6-Billion EV Battery Plant Announced in Southern Ontario

Port Colborne, ON – A major investment in the future of electric vehicles (EV) is coming to southern Ontario’s Niagara Region, as a $1.6-billion EV battery plant has been officially announced. Prime Minister Justin Trudeau and Ontario Premier Doug Ford joined local officials in Port Colborne on Tuesday to unveil the new facility, which is being developed by Japanese company Asahi Kasei Corp.

Mayor Bill Steele hailed Asahi Kasei’s investment as the most significant in the city’s history, marking a major milestone for Port Colborne. “This investment will spur the resurgence of new industries, not just in the EV battery trade,” Steele remarked. “It’s going to give a whole boost to the city.”

The new facility will be Canada’s first lithium-ion battery separator plant. These separators are crucial components in preventing short circuits within batteries while allowing lithium ions to move efficiently. The plant is set to occupy half of a 162-hectare parcel along Highway 140 and is expected to be operational by 2027.

Asahi Kasei, in partnership with Honda, will produce battery separators for Honda’s nearby EV battery plant in Alliston, Ontario. Honda is investing $15 billion to create a comprehensive supply chain in the province for its electric vehicles. The strategic location of Port Colborne, with access to rail, water, highways, and proximity to the Canada-U.S. border, was a significant factor in Asahi Kasei’s decision.

Prime Minister Trudeau emphasized that Canada’s clean energy resources and commitment to climate action were key drivers for the investment. “We have stable democratic institutions and strong communities, which are what international investors look for,” Trudeau said. Both Trudeau and Ford highlighted the potential for job creation, promising employment opportunities for generations to come.

Port Colborne has been in discussions with Asahi Kasei for nine months, and the announcement has been met with optimism from local leaders and residents. The plant is expected to boost the local economy, increase the tax base, and spur home construction. Union leaders and regional officials are hopeful that the investment will benefit local autoworkers and create a ripple effect of economic growth.

While the announcement has been broadly welcomed, there are calls for assurances regarding job allocation. Federal Conservatives and NDP representatives have urged the government to ensure that the majority of jobs created will benefit Canadians. Minister of Innovation, Science and Industry François-Philippe Champagne assured that job creation for Canadians is a top priority in all discussions with partners like Asahi Kasei.

The new EV battery plant in Port Colborne represents a significant step forward in Canada’s EV industry, promising economic growth and job creation for the Niagara Region. With substantial government support and strategic partnerships, this investment marks a historic moment for the city and the country’s green energy future.