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Ontario Pushes Electric Vehicle Manufacturing

November 25, 2021

Southwestern Ontario is the top-ranked vehicle assembly jurisdiction in North America and a leading technology hub. Ontario’s automotive sector accounts for over 100,000 jobs and supports many more in the supply chain. It is the only place in North America where five major automakers build vehicles: Ford, GM, Honda, Stellantis and Toyota. On November 17, 2021, the Ontario government announced increased investments in electric vehicle (EV) and battery manufacturing.
Below are five key takeaways from these announcements:

  1. Long-Term Plan. In Phase II of Ontario’s plan, Driving Prosperity: The Future of Ontario’s Automotive Sector, the province aims to strengthen the auto industry and make the province more competitive for new investments in response to the global demand for EVs. It also aims to support the related domestic parts producers, workers and innovators.

  2. The Aspiration. The plan calls for the sector to build at least 400,000 EVs and hybrid vehicles by 2030. Ontario wants to secure production mandates for hybrid and EVs to create a domestic battery ecosystem and position the province as a North American automotive innovation hub.

  3. The Goals. Ontario said it will partner with the auto sector to implement new automaker mandates for hybrid and battery EVs, establish and support an electric battery supply chain ecosystem that connects northern Ontario’s mineral wealth with the manufacturing strength of southern Ontario, innovate at every stage of development and equip auto workers with the necessary skills to secure rewarding, high-paying jobs.

  4. Public Funding. Ontario previously committed C$56.4-million over the next four years through the Ontario Vehicle Innovation Network to support innovation and transformation in our auto-tech system. The province also points to programs such as the Regional Development Fund and reductions to the cost of doing business that it claims total nearly C$7-billion.

  5. Investment by Automakers. In the past year, major automakers such as Ford, Stellantis and GM have invested almost C$6-billion in Ontario assembly operations, including around C$4-billion in transformative investments in EV production.

Have more than five minutes? Contact any member of our Automotive group or Autonomous & Connected Vehicles group to learn more. You can also read our previous update on Ontario’s long-term plan that these latest announcements relate to and view Phase II of Ontario’s plan.