Ford to Build $887 Million Electric Vehicle Battery Material Plant in Canada

Ford has announced plans to build an electric vehicle battery material plant in Becanour, Quebec, Canada. The automaker will partner with a consortium of South Korean companies for the project, with a confirmed investment of CA$1.2 billion ($887 million). The factory is expected to produce up to 45,000 tonnes of cathode active materials annually for Ford’s electric vehicles.

The partnership between Ford and the South Korean consortium, which includes EcoProBM and SK On, aims to strengthen the supply chain for electric vehicle batteries. Production at the plant is set to begin in 2026.

To support the project, Canada’s federal government will provide a conditional loan of CA$322 million ($237 million), while Quebec will offer the same amount as a partially forgivable loan. This financial support demonstrates the government’s commitment to promoting the growth of the electric vehicle industry in Canada.

The new facility will cover a 280,000-square-meter site and feature a six-floor building. It will employ approximately 345 professionals, including engineers, salespeople, and service professionals. In addition to battery material production, Ford will conduct research and development activities at the site to enhance battery safety, performance, and manufacturing processes’ environmental sustainability.

Francois-Philippe Champagne, Canada’s industry minister, expressed his enthusiasm for the project, stating that it signifies a significant investment in Quebec’s electric vehicle ecosystem. He highlighted that the auto sector has traditionally focused on Ontario but now welcomes major players like GM and Ford in Becancour.

Ford’s investment in the new facility aligns with its commitment to serving customers in Canada. As the automaker with the longest history in the country, Ford has been operating in Canada for 119 years. The company aims to create a vertically integrated, closed-loop battery manufacturing supply chain in North America to make electric vehicles more accessible to millions of people over time.

Bev Goodman, President and CEO of Ford of Canada, expressed excitement about the opportunity to invest in Quebec and contribute to the development of the electric vehicle ecosystem there. The new facility will play a crucial role in shaping the future of electric vehicles in the region.

The construction of the battery material plant in Quebec is part of Ford’s global strategy to expand its electric vehicle offerings. The company has been actively investing in battery manufacturing facilities worldwide to support its ambitious electrification goals. In addition to the Canadian plant, Ford recently announced a $4.5 billion joint venture with Indonesian firms to establish a battery material plant in Indonesia.

By establishing a robust battery supply chain, Ford aims to enhance the affordability and accessibility of electric vehicles. The company recognizes that the availability of high-quality battery materials is essential for the widespread adoption of electric vehicles and is committed to driving innovation in this area.

With the construction of the new battery material plant in Quebec, Ford is taking a significant step towards achieving its electrification goals. The investment will not only create job opportunities but also contribute to the growth of the electric vehicle industry in Canada. As the demand for electric vehicles continues to rise, Ford’s commitment to expanding its manufacturing capabilities will position it as a key player in the global electric vehicle market.

In conclusion, Ford’s decision to build an electric vehicle battery material plant in Quebec, Canada, demonstrates its dedication to advancing the electrification of transportation. The partnership with South Korean companies and the support from the Canadian government highlight the collaborative efforts needed to accelerate the growth of the electric vehicle industry. With this investment, Ford aims to strengthen its position in the market and make electric vehicles more accessible to consumers worldwide.