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.

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.

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."

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.