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.”
HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.
Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.
Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”
Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.
The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.
Those delays forced Nova Scotia Power to spend more on generating its own electricity.
This report by The Canadian Press was first published Sept. 16, 2024.
TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.
The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.
“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.
The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.
But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.
Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.
“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.
“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”
Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.
The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.
In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.
Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.
The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.
The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.
Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.
Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.
It will also re-evaluate its design ranks.
Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.
Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.
This report by The Canadian Press was first published Sept. 13, 2024.
VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.
No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.
About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.
Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.
Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.
A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”
This report by The Canadian Press was first published Sept. 12, 2024.
