Feds and Quebec Drop $644 Million for Ford EV Battery Plant
Ford, along with South Korean firms SK On and EcoProBM, have announced a $1.2 billion CAD investment to build a cathode manufacturing facility in Bécancour, Quebec. The new facility will focus on producing materials pivotal to the batteries in Ford’s forthcoming electric vehicles.
Slated to start production in 2026, the site will have an annual output capacity of up to 45,000 tonnes of cathode active materials (CAM). This initiative represents Ford’s first investment in Québec, emphasizing its commitment to localize battery raw material production in its EV manufacturing regions.
“Ford is delighted to reinforce its longstanding commitment to Canada with this significant investment, aiming to revolutionize the North American electric vehicle landscape,” said Bev Goodman, CEO of Ford of Canada in a statement.
The massive 280,000 square-meter construction site will host a six-story building and create roughly 345 new jobs, ranging from engineering to co-op roles from Québec’s academic institutions. Additionally, the facility aims to champion R&D endeavours to enhance battery safety, performance, and eco-friendly manufacturing.
Both federal and provincial leaders played instrumental roles in securing this monumental joint investment. François-Philippe Champagne, Minister of Innovation, Science, and Industry, said in a statement, “This venture reinforces Canada’s standing as a favoured green strategic partner in the automotive realm, enhancing Quebec’s stature in the electric vehicle supply chain.”
Now, this factory does not come for free for taxpayers it seems. The federal government is providing a conditional contribution of $322 million through the Strategic Innovation Fund, and the Government of Quebec is providing a “partially forgivable loan” of $322 million through Investissement Québec. That’s $644 million that is going towards Ford to build this EV plant.
“I am very proud that Quebec has drawn the attention of big players like Ford-EcoProBM-SK On. After GM-Posco this spring, we are announcing a new major investment of 1.2 billion in the Vallée de la transition énergétique, which will allow for the construction of a new cathode active materials plant in Bécancour,” said François Legault, Premier of Quebec.