The federal government is investing in the country’s first plant for electric compressors, a critical component of electric and hybrid vehicle manufacturing.
Canada is aiming to “become a global EV supply chain leader,” according to an official statement.
The federal Strategic Response Fund will supply South Korea’s Hanon Systems with $10 million to support the construction of a manufacturing plant for vapour-injected electric compressors for electric and hybrid vehicles, as well as a product development centre, in Ontario.
“Today’s announcement highlights the importance of the Canadian automotive industry for the growth of our economy,” commented minister of industry Mélanie Joly.
The $200M project is forecast to produce up to 1.5 million e-compressors per year by 2034 as well as create 300 jobs in the region of Vaughan.
Joly says that Hanon’s “groundbreaking facility will drive innovation in EV parts manufacturing, create good jobs in Ontario, and help our country become a leader in the global EV supply chain.”
“By investing in projects such as Hanon Systems, we are securing Canada’s future in the global zero-emission vehicle ecosystem,” said Joly. “It’s a win for the economy, the environment, and the Canadian workforce.”
Founded in 1986, Hanon Systems is an automotive thermal management solutions provider that
currently operates three facilities in Canada.
The Korean company is “committed to supporting the transition to electrified mobility through continued investment in advanced technologies and local capabilities,” according to chief executive officer Soo-Il Lee.
“We appreciate the Government of Canada’s partnership and look forward to contributing to a stronger and more competitive EV supply chain in Canada,” stated Lee.
In February, Prime Minister Carney unveiled Canada’s new automotive strategy to attract new investment in EV manufacturing and connected technologies.
The strategy includes $3 billion from the Strategic Response Fund and $100 million from the Regional Tariff Response Initiative to support investment in automotive manufacturing.