Ford Motor Co., in collaboration with South Korean battery-component manufacturers SK On Co. and EcoPro BM Co., is set to construct a cathode active material plant in Quebec worth over C$1.2 billion ($887 million). The Canadian and Quebec governments are providing loans amounting to C$644 million to support the project located in Becancour, which is expected to generate at least 345 job opportunities and cater to Ford's factories in Canada and the US.
Becancour, a small community northeast of Montreal, is swiftly becoming a vital hub within the North American electric-vehicle supply chain and has been attracting investments from corporate giants. The establishment of the Ford plant will further bolster the growing EV ecosystem being developed in Quebec and Ontario, according to Canadian Industry Minister François-Philippe Champagne.
Champagne believes that this development will garner global attention as an increasing number of key players choose Canada to establish their factories. He further emphasized the significance of this investment, stating, "It's very significant."
Operations at the EcoPro CAM Canada facility are anticipated to begin in the first half of 2026, with an annual production capacity of approximately 45,000 metric tons of cathode active materials.
The funding for the project includes a conditional loan of C$322 million from the Canadian government and a partially forgivable loan of the same amount from the province of Quebec.
The discussions regarding the construction of the plant in Quebec were disclosed last fall when Ford and the Korean firms announced their intention to invest in a North American production facility that would supply batteries for their joint venture in Tennessee and Kentucky.
Ford's announcement follows the news from May that General Motors Co. and Posco Future M Co. secured half of the financing for a C$600 million battery plant in Becancour. Other notable firms, such as Germany's BASF SE and Brazilian miner Vale SA, have also committed to investing in the region.
Canada has been actively supporting the U.S.-led effort to diminish China's dominance in electric-vehicle manufacturing. However, the Inflation Reduction Act has significantly increased the cost for Prime Minister Justin Trudeau's government, compelling it to match billions in subsidies offered by the United States to attract automakers like Stellantis NV and Volkswagen AG to Ontario.
Minister Champagne firmly believes that these investments will yield long-term benefits. He stated, "It's only once in a lifetime you see a major shift in technology, in respect to the automobile, from a combustion engine to an electric engine, and that’s why you’ve seen me so active to make sure we land these deals in Canada. These opportunities only come once in a generation, but the benefits are going to be multi-generational."