Federal and provincial officials helped break ground in Loyalist Township Monday on a multi-billion-dollar plant they say will produce components for electric vehicle batteries and bring hundreds of jobs to the region.
The project from Umicore Rechargeable Battery Materials Inc. carries a total price tag of up to $2.76 billion. Based on its full scope, the Canadian government is investing up to $551.3 million, while the province will pay up to $424.6 million, according to a news release from Innovation, Science and Economic Development Canada.
The Umicore CEO said he’s “delighted” with the financial backing from different levels of government.
“I do promise that … this plant in Loyalist will not only deliver a return on investment. It will be much more,” Mathias Miedreich told those gathered at the site, adding the company will contribute to the community and economy.
The project is expected to roll out in multiple stages, the first of which the government said will result in 600 new jobs. Another 700 co-op positions will be created throughout the project, the government stated.
Officials described the plant as the “first of its kind in North America,” adding it will produce cathode active materials (a component of the batteries used in electric vehicles) and precursor cathode active materials on an industrial scale.
The full project could make enough battery materials to support the production of more than 800,000 EVs per year, the government said, adding the process will use Canadian materials including nickel, lithium and cobalt.
Ontario Premier Doug Ford was joined by Vic Fedeli, Ontario’s minister of economic development, job creation and trade at the Monday announcement.
Latest investment in electric vehicle industry
Ford described the project as further evidence of the province putting the “auto sector back on the map,” while creating jobs and ensuring “cars of the future” will be made in Ontario.
The announcement took place in a tent surround by earth that had been scraped clear by bulldozers.
Ford said the site covers more than 141 hectares and called the coming facility “world class.”
Ontario Premier Doug Ford voiced his government’s support for the Umicore plant in Loyalist Township ahead of a groundbreaking ceremony on Oct. 16, 2023. (Dan Taekema/CBC)
François-Philippe Champagne, the federal minister of innovation, science, and industry, also said in the news release the project is “strengthening Canada’s position as the green supplier of choice.”
At one point during his speech, Champagne pointed to Loyalist Township Mayor Jim Hegadorn.
“If anyone wants to see what a multi-billion dollar smile looks like, just look at the mayor,” he joked.
Hegadorn said the project represents an economic boost for the region.
“Our community has been energized and eager to welcome them to Loyalist,” he said. “Residents and businesses alike are anxiously watching the progression and waiting for this project’s completion.”
Loyalist Township Mayor Jim Hegadorn smiles during speeches ahead of the groundbreaking for a new EV battery component plant in his community on Oct. 16, 2023. (Dan Taekema/CBC)
Miedreich, Umicore’s CEO, told reporters the site is expected to start production in 2026.
The announcement is the latest in a series of large investments from provinces and the federal government to support Canada’s burgeoning electric vehicle industry.
Such projects have faced questions, given the amount of public money involved, but experts say public financing is crucial to compete against cut-throat international competition.
‘We never win on the money,’ says minister
Greig Mordue, the chair of advanced manufacturing policy at McMaster University’s school of engineering, and a former Toyota executive, previously told CBC the auto industry has a long history of being propped up by the government.
“Our industrial policy now consists of one tool and that is a chequebook, and that’s where we are today,” he said.
Heavy equipment could be seen at the site where Umicore intends to build it’s new plant to manufacture EV components. The company’s CEO said it plans to begin production in 2026. (Dan Taekema/CBC)
Champagne pushed back against that idea following the announcement on Monday, saying he believes the investment will pay dividends for generations to come.
“I would say we never win on the money,” he said.
“We win because we have the best talent. We win because we have the critical minerals that are needed, [and] not only the critical minerals, but proximity to resources, market and assembly line.”
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
