Bright spots in Canadian auto manufacturing

While the auto industry does have some struggles ahead, OEMs, suppliers, and the federal and provincial governments have announced a series of investments in Canada’s auto sector. Here are just a few in the last six months:

November 2022 - Vale Canada and General Motors (GM) signed a deal for long-term supply of battery-grade nickel sulfate from Vale’s proposed plant at Bécancour, Que., to support its EV production needs in North America. Vale will supply battery-grade nickel sulfate, equivalent to 25,000 metric tons per year of contained nickel, for use in GM’s Ultium battery cathodes, which will power EVs including the Chevrolet Silverado EV, Blazer EV, and Equinox EV; the Cadillac LYRIQ; and the GMC Sierra EV and GMC HUMMER EV Pickup and SUV. The amount of contained nickel is sufficient to supply approximately 350,000 EVs annually.

December 2022 - GM announced the opening of Canada's first full-scale electric-vehicle manufacturing plant. With investment support from both the provincial and federal governments, GM has completely retooled the CAMI Assembly plant to become the new global manufacturing home of BrightDrop’s fully electric delivery vans. GM began retooling CAMI for electric vehicle production on May 1, 2022. In just seven months, the team installed entirely new production equipment covering 2 million sq. ft.

February 2023 – Stellantis North America announced Jason Stoicevich as leader of the Canadian operations, reporting to Mark Stewart, North America COO, effective immediately. In a related move, after 35 years of service, David Buckingham, current lead for operations in Canada, has announced his intention to retire at the end of May.

February 2023 – Magna announced it is investing more than $470 million to expand its operations across Ontario. The growth includes a new battery enclosures facility in Brampton to support the Ford F-150 Lightning and future OEM programs. They are also supported by $23.6 million in grants from the Ontario government to bring additional high-quality jobs to the region with ongoing training and development programs for employees.

• Brampton: A new 490,000-sq.-ft. leased facility will manufacture battery enclosures for EVs. Operations will begin in Q2 2023 and roughly 560 new jobs are expected at full production.
• Guelph: Magna is adding e-coat, molding, and welding capacity to its exteriors plant to support EV production. The expansion will total 120,000 sq. ft., and production is planned to begin in Q2 2023. Approximately 175 new jobs are expected.
• Belleville: The lighting plant is adding to its capabilities for printed circuit board assemblies and will start operations in Q4 2023. Up to 100 new jobs are expected.
• Newmarket: Magna’s mechatronics facility, which produces vehicle access systems including side door latches, electronic control units, and power systems, expects to add approximately 75 new jobs.
• Windsor: The mechatronics plant adds new business for powered aluminum tonneau covers and expects to add roughly 110 new jobs.
• Penetanguishene: This mechatronics facility is growing its tailgate hinges production and more than 15 new jobs are planned.

February 2023 - GM plans to invest at its St. Catharines Plant to manufacture new Ultium electric drive units. This investment plan is expected to support around 500 jobs at the St. Catharines facility and enable the production of more than 400,000 EV drive units a year. The drive units will be used in Cadillac LYRIQ, Chevrolet Equinox EV, Chevrolet Blazer EV, Chevrolet Silverado EV, GMC Sierra EV, and GMC HUMMER SUV EV, which are all entering the North American market.

March 2023 - Federal Economic Development Agency for Southern Ontario (FedDev Ontario) has announced nearly $16 million in support to strengthen southern Ontario's manufacturing sector as it transitions to a net-zero clean economy.

This includes an $8.8-million non-repayable contribution for Canadian Manufacturers & Exporters (CME) to launch the Technology Investment Program (TIP). This project will support 160 SMEs and create and maintain 870 jobs.

• Marwood International will receive a $5 million repayable loan to transition its facilities to manufacture complex and high-quality structural EV parts, like body structure and battery support components. It is expected to create 60 jobs in Ingersoll, Ont.

Canadian Fabricating & Welding's recently featured Marwood International in Driven to Succeed.

• Remmen Brakes will receive a $2.1 million repayable loan to accelerate the testing and commercialization of its first-in-market EV Nonlinear Electro-Mechanical Brake (NEMB) system. It is expected to create 15 jobs in Port Perry, Ont.

March 2023 - Volkswagen subsidiary PowerCo has announced plans to build an EV battery manufacturing facility in St. Thomas, Ont.

Don't miss our March cover story The Road Ahead that looks at how innovation and electrification are shaping Canada’s auto sector