A battery plant would likely change economic trajectory of region

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Automotive Parts Manufacturers’ Association president Flavio Volpe says the expected announcement of a new battery plant in Windsor is a transformational investment beyond anything previously seen in the Canadian automotive sector.

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“It appears to be we’ve finally landed a big one,” Volpe said. “Very important step in legitimizing the region in the electrification of automobiles.

“The most important distinction between the haves and have-nots is going to be where the battery investments land. I think we’ve answered that one with this.”

The Stellantis and LG Energy Solution plant is expected to cost around $4 billion and employ as many as 3,000 people. The facility would be located on a greenfield site of around 230 acres (93 hectares) in Windsor.

Federal, provincial and municipal officials, along with representatives from the companies, are expected to formally announce a project Wednesday.

The three levels of government have all chipped in with incentives to land the massive complex.

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Volpe said the plant would be centrally located to serve Stellantis’s regional plants on both sides of the border and assures the company access to Canada’s critical mineral supply. He added that a large battery plant would also bode well for the long-term future of the company’s vehicle assembly plants in Windsor and Brampton.

“It probably means for every battery assembly job, we’ll probably see two battery component jobs in the region as well,” Volpe said.

“We’re looking at a whole new supply chain within the industry and different players to add to the mix of metal shapers and plastic bumpers.”

AIS Technologies Group’s director of marketing and business development Shawn Horton said the impact on Essex County would be tremendous.

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“It’s diversification,” said Horton, who noted AIS is already heavily involved in services and equipment for electric vehicle production for major automakers.

“There are so many elements in electrification that are going to require development.

“It’s not just about electric vehicles, but the evolving opportunities of companies trying to get into it. There are new OEMs to work with and other new companies.

“You’re going to see new suppliers come here in the areas of battery cells, materials and plastics.”

Horton added the advanced technology of battery production would also reduce the brain drain from the region. He expects it would instead act as a magnet for top talent.

“Detroit is going to have an issue because a lot of our graduates go there and with the new technology involved here, they’ll have a choice on this side of the border,” Horton said.

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“There’s also going to be great opportunities in automation and the automation service sector.”

Windsor-Essex County Regional Chamber of Commerce CEO Rakesh Naidu said if the plant comes as advertised, it will change the trajectory of the region. He said the area needs to begin planning now how it plans to deal with the influx of investment and population that will result.

“This technology is the future,” Naidu said.

“The most important thing is that it signals Windsor is the place to be for automobility. It’s really going to create a more positive and optimistic conversation in our region.

“That induces even more investment.”

Aside from the general economic expansion generated from the injection of billions of dollars and the creation of thousands of jobs, Naidu expects the plant to spur growth in the research and development sector in the area.

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“The automotive sector is undergoing massive change and I’m sure we’ll see a lot of action in research and development at the university and St. Clair, but also from technology companies moving here,” Naidu said. “Windsor is going to be the center of the electric vehicle sector in Canada.

“That’s the beauty of the auto industry investment; its ripple effect spreads far beyond its own sector.”

Volpe also emphasized the importance of this investment goes beyond just the immediate economic benefits of landing the factory.

“Once you show a major investor that a major new investor in the space has bet on Ontario after doing its due diligence, it makes it easier to get the second and third one,” Volpe said.

He added it also sends a signal that companies are confident US President Joe Biden’s Buy American bill isn’t going to be a threat to their bottom lines if they build in Canada.

“These decisions certainly bring more comfort in that regard,” said Volpe, whose organization has been an aggressive lobbyist against the Biden bill.

“There’s still work to be done, but certainly there’s more of a comfort level among the site selectors for these companies.”

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