Ford To Build $1.2 Billion EV Battery Plant In Quebec

Ford Motor Co. (F) has announced plans to build a $1.2 billion cathode active material plant for electric vehicle batteries in Becancour, Quebec.

Ford will be joined in the new Quebec plant by South Korean battery-component makers SK On and EcoPro BM.

The federal government in Ottawa and Government of Quebec are providing loans totaling $644 million to the companies to develop and build the facility in Becancour, which is expected to create nearly 350 jobs and serve Ford’s production factories in the U.S. and Canada.

The Quebec project is the latest investment in the small community northeast of Montreal, which aims to become a centre for the North American electric vehicle supply chain.

The Becancour facility is expected to begin operations in 2026 and produce an average of 45,000 metric tons of cathode active materials each year.

The taxpayer funding is broken down into a conditional loan of $322 million from Canada’s federal government and a partially forgivable loan for the same amount from the Government of Quebec.

Ford’s announcement comes after General Motors (GM) and Posco Future M announced in May that they had secured half of the financing needed for a $600 million battery plant in Becancour. Germany’s BASF SE and Brazilian miner Vale SA are also investing in the region.

While the investments by foreign companies are encouraging, they have come at a price as governments across Canada have been forced to match billions in U.S. subsidies to lure the companies away from neighbouring America.

Ford’s stock has declined 27% over the last 12 months to trade at $11.83 U.S. per share.

batteries
electric vehicle