Winnipeg misses out on $1.6B EV battery component plant - Action News
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Manitoba

Winnipeg misses out on $1.6B EV battery component plant

A Japaneseelectric vehicle battery supplierthat was eyeing land in Winnipeg fora $1.6-billionplanthas chosen to build its facility inOntario instead.

Lithium-ion separator plant to be built in Ontario as part of larger Honda electric vehicle plant project

A closeup of the handle of a charging cord plugged into a black car.
A file photo shows an electric vehicle charging. Winnipeg has missed out on a lithium-ion separator plant, which will produce a component used in electric vehicle batteries. (David Donnelly/CBC)

A Japaneseelectric vehicle battery supplierthat was eyeing land in Winnipeg fora $1.6-billionplanthas chosen to build its facility inOntario instead.

Asahi Kasei announced Thursday it plans to build a lithium-ion battery separator plantin southernOntario in ajoint venture with Honda, which also announced plans tobuild four EVmanufacturing facilitiesin Ontariothe same day.

Tokyo-based Asahi Kasei did not identify where in Ontario it will build the separator plant, which will produce a component used in electric vehicle batteries. The federal government and Ontario's provincial government are providing financial support for the plant, the companysaid in a press release.

Prime Minister Justin Trudeau and Ontario Premier Doug Ford announced $5 billion in combined incentives for the Honda andAsahi Kasei plants.

The Ontario and federal governments previously struck a deal to build an EV battery plant in Windsor, Ont., with NextStar Energy a partnership between Stellantis and the South Korean company LG Energy Solution.

Doug Ford and Justin Trudeau shake hands
Ontario Premier Doug Ford and Prime Minister Justin Trudeau announced plans for a Honda electric vehicle battery plant in Ontario on Thursday. (Nathan Denette/The Canadian Press)

Two sources confirmed Asahi Kasei had been looking at City of Winnipeg-owned landnear the West End Water Pollution Control Centre. Global News initially reported this in January.

The province of Manitoba, the City of Winnipeg and Economic Development Winnipeg, who were involved in the effort to lureAsahi Kaseitothis province, did notdisclose what, if any, financial incentives were offered to build the facility in Winnipeg.

In a statement, Economic Development Winnipeg said Manitoba and its capital city continue to attract interest from potential investors in the clean-energy sector.

"Manitoba's strengths as a competitive location for battery supply chain investment are increasingly recognized internationally, with our province being blessed with affordable, renewable energy, skilled manufacturing talent, and 29 of 31 critical minerals," saidRyan Kuffner, the development agency's president and CEO, in a statement.

"Our team works in close collaboration with all levels of government to promote these advantages, and we remain committed to advancing significant economic development opportunities for Winnipeg and Manitoba."

Dozens of cells for battery manufacturing tightly packed in rows
Cells for battery manufacturing wait to be assembled into modules at Lion Electric Company's lithium-ion battery manufacturing facility in Mirabel, Que. Tokyo-based Asahi Kasei's lithium-ion separator plant is now slated for Ontario, the company said Thursday. (Christinne Muschi/The Canadian Press)

Jamie Moses, Manitoba's economic development minister, echoed that sentiment.

"Manitoba has so much to offer when it comes to critical minerals. That resource advantage combined with [Manitoba] Hydro's clean baseload power and skilled workforce makes our province attractive to some of the world's biggest manufacturing companies," Moses said in a statement.

Winnipeg Mayor Scott Gillingham said the city will continue working with the province and Economic Development Winnipeg to attract investment.

"Winnipeg offers huge advantages when it comes to affordability, skilled and diverse labour, and access to some of the cleanest energy in Canada," he said in a statement.

EV battery supplier chooses Ontario city over Winnipeg for $1.6B component plant

5 months ago
Duration 2:11
A Japanese electric vehicle battery supplier that was eyeing land in Winnipeg for a $1.6-billion plant has chosen to build its facility in Ontario instead.