Quebec, Ottawa investing $644M for construction of new Ford EV plant in Bcancour

Ottawa and Quebec are investing $644 million to build a new Ford plant in the city of Bcancourto produce the materials needed for the batteries used in its electric vehicles.

The federal government will be providing $322 million to the American company through the Strategic Innovation Fund. Investissement Qubec, the provincial government's investment arm,will loan the other half. Part of that amount will be forgivable.

Estimated at over $1.2 billion, the project will create over 345 jobs. This facility, which will be locatedjust south ofTrois-Rivires about 150 kilometres east of Montreal,will be built by a consortium made up of Ford Motor Companyand Korean companies EcoProBM and SK On.

QuebecPremier Franois Legaultmade the official announcement Thursday morning withpoliticians from all levels of government, as well as dignitaries and business leaders from the U.S. and South Korea.

He laudedFord's decision to build its plant in the small central Quebec city,which isseeking to become an EV-supply-chain hub.

"We've come here today to show that we're now capable of attracting big players like Ford. And for me, that's a source of great pride. It confirms that Quebec is truly positioning itself as a world leader in the green economy," Legaultsaid.

'Big win for Canada'

The plant, due to open in 2026, will eventually produce 45,000 tonnes of cathode activematerials (CAM) per year for future Ford EVs, especially trucks.Its production will be destined for Ford's automotive assembly plants in Canada and the United States.

"It's a big win for Canada," saidFederal Innovation MinisterFranois-Philippe Champagnein an interview.

"We're playing a critical role in the electrification of transportation in North America."

WATCH | Polytechnique Montral professor says plant won't help Quebec hit EV goals:

Energy expert sees 'disconnect' between Bancour EV plant and Quebec's carbon-neutral goals

1 year ago

Duration 3:11

Normand Mousseau, the scientific director of the Trottier Energy Institute at Polytechnique Montral, says the Quebec government should also put effort into decarbonizing the current industry.

At Thursday's news conference, Champagne said thatjust a year ago, Quebec would not be considered a big player in fields likebatteries, the environment orelectric vehicles.

"But today, we're talking about Quebec," he said. "Behind what you see today is a region that is emerging, a region that is positioning itself in the automotive ecosystem."

Quebec Economy Minister Pierre Fitzgibbonsaid this latest investment will help the provinceachieve carbon neutrality by 2050.

"It's optimistic, it's ambitious but with these new, strong corporate linksI strongly believe that it's doable and that we're quickly moving in the right direction," he said.

Ford is the secondplayer in the automotive industry to choose Bcancour to set up a battery plant. Last year, GM announced its intention to set up shop there, and the start of its production of CAM is planned for 2025.