For over a century, the auto sector has been a huge part of Ontario’s economy, and today, the province is the second largest vehicle producing jurisdiction in all of North America.
Our province is the only place in the world where five major auto assemblers currently operate – Ford, General Motors, Stellantis, Honda, and Toyota. And, just last year – Volkswagen announced that its subsidiary PowerCo would be joining Ontario’s automotive landscape as the sixth major presence, establishing an electric vehicle (EV) manufacturing facility set for operation in 2027.
With a talented workforce, state-of-the-art R&D facilities, world-class universities, and a stable, competitive business environment, Ontario is one of the best places for businesses to invest and grow.
It is important to note, however, that this success was no accident. Since 2018, our government has made electricity more affordable, cut red-tape and kept taxes and fees low, saving businesses $8 billion a year. At the same time, we’re building an automotive ecosystem well-positioned to build the cars of the future, with the supply chain security, skills base, and technology clusters essential for fostering innovation and growth.
As the world continues to shift towards a low-carbon economy, Ontario is uniquely positioned as a competitive player, one that is both ready and able to seize the opportunities that this once-in-a-generation revolution affords. By connecting the wealth of critical minerals and resources in Ontario’s northern region with the manufacturing might found in the south, our province has every element necessary to produce the next generation of vehicles – and key industry players are taking notice.
Unleashing Ontario: History in the Making
Over the past three years alone, Ontario has attracted over $43 billion in automotive and EV-related investments. Bloomberg now rates Canada as the number one EV supply chain in the world, overtaking China for the first time – with the majority of key auto investments over the past several years landing in Ontario. This is an incredible feat, especially considering that our province wasn’t even on the map in 2018, when it had no share in the $300 billion that automakers were planning to invest in the production of EVs globally.
Our government has long recognized that for our province’s economy to thrive, we must listen to the needs of our key sectors. Since taking office in 2018, we have made concentrated efforts to work directly with the auto industry and provide them with reliable service to ensure that our actions – big and small – were driving prosperity, not inhibiting it.
As Ontario implemented three pillars for action – a competitive business climate, innovation, and talent – the industry responded by accelerating its shift to the production of next-generation vehicle technologies in our province.
The province’s EV revolution began in 2020, with a $1.8 billion investment from Ford Motor Company to retool its Oakville plant into a global hub for EV battery production. In the years that followed, Ontario began to see a domino effect of unprecedented investments in electric and battery EV manufacturing.
In March 2022, NextStar Energy, a joint venture between LG Energy Solutions and Stellantis, announced an investment of over $5 billion to build Canada’s first EV battery manufacturing plant.
In 2023, Umicore, a Belgian circular materials company, invested $2.7 billion to build a cathode materials plant in Ontario’s Loyalist Township. The investment will create 600 new jobs and will produce enough battery materials for over 800,000 EVs each year.
Also, in 2023, Ontario’s Magna International, one of the world’s largest automotive suppliers, announced a $471 million investment to build a new EV battery enclosure facility and expand their existing operations across the province, adding more than 1,000 new, good-paying jobs.
Mitsui High-tec (Canada) Inc. then announced a $102.3 million investment to expand their motor core operations, creating over 100 highly skilled jobs.
But the real jewel in the crown of these investments was Volkswagen’s landmark decision to select St. Thomas, Ontario as the location of its largest overseas battery cell manufacturing plant. At $7 billion, the investment represents the largest individual industrial commitment made by an auto manufacturer in Canadian history. Once complete, the plant will produce batteries for up to one million EVs per year, solidifying our domestic battery manufacturing supply chain to meet the growing global demand for EVs.
The Workforce of the Future: Ontario’s World Class Talent
Home to some of the world’s leading colleges and universities, Ontario produces over 70,000 STEM graduates each year, and is widely recognized for its unique and collaborative ecosystem, where business, academia and government work together to drive innovative ideas to market.
As the demand for specialized skills grows, our government is ensuring students have enhanced access to new battery electric technologies at some of the province’s 24 colleges with auto-focused programs.
In May 2023, our government announced an investment of nearly $6 million through the Ontario Vehicle Innovation Network’s Regional Future Workforce (RFW) program, to support 14 innovative projects that would introduce students to opportunities in the auto sector and help them develop the skills they need to secure good-paying jobs after graduation.
By investing in today’s students, we are shaping tomorrow’s technicians, equipping them with the essential skills required for the workforce of the future.
Powering Possibility: Ontario’s Battery Supply Chain Ecosystem
Ontario’s auto supply chain is comprised of more than 700 parts firms, 500 tool, die and mold makers, and over 400 companies working on connected, autonomous, electric and mobility technologies. As automakers and manufacturers look to reduce emissions across the supply chain, our government’s Driving Prosperity auto strategy supports the shift to low-carbon steel production, building on our legacy of offering the cleanest energy mix of all auto jurisdictions in North America.
Ontario also benefits from being the only jurisdiction in the western hemisphere with all of the critical minerals needed to build EV batteries, including nickel, cobalt, lithium, and graphite. When paired with our more than 50 free trade agreements which provide preferential access to over 1.5 billion consumers, Ontario offers an unparalleled advantage to investors seeking shovel-ready mega sites and gateways to global markets.
Driving Prosperity Through Partnerships: Invest Ontario
As we continue to build out Ontario’s end-to-end EV supply chain and position the province as a top tier destination for investment, it is integral that businesses have access to supports at every step of the way. That is why in 2020, our government established Invest Ontario, an agency serving as a one-stop shop for tailored investment solutions, intended to invite and facilitate investments to our province.
Whether a company is already based within the province and looking to expand, or considering Ontario for the first time, the agency provides a wide range of business development and planning expertise intended to optimize a company’s economic growth in a highly competitive global market. Bridging the gap between business and government, the agency offers white-glove service during both investment attraction and implementation stages, making sure that companies can navigate all that the province has to offer to the fullest potential.
Focusing on three strategic sectors where the province already holds a competitive advantage – advanced manufacturing, life sciences and technology – Invest Ontario moves at the speed of business. Whether supporting in matters of site selection, navigating available financial supports, or serving as a liaison between different municipal partners, Invest Ontario is there to guide you through every step of the process.
Through its Invest Ontario Fund, the agency has already secured over $2.4 billion in investments, and continues to ensure we attract strategic partners, encourage innovation, create good-paying jobs, and support strong supply chains across a wide range of sectors.
As Ontario continues to uphold its commitment to excellence and advancing its status as one of the most competitive jurisdictions for the global manufacturing of EVs, we welcome you to become a part of our story. Whether big or small, well-established, or only just beginning to explore what the province has to offer, this is the time to Invest in Ontario.
