The Ontario government has agreed to provide a $670 million loan to support a new $3.2 billion electric vehicle supply chain project in southwestern Ontario, a deal provincial leaders say will help secure the province’s position in the growing battery manufacturing sector.The announcement was made Friday during a press conference in St. Thomas, where Norwegian company ViaNode confirmed plans to build a synthetic graphite production facility, material used in electric vehicle batteries as well as energy storage, defence and nuclear applications.The province says the project will create approximately 300 jobs initially, with employment expected to exceed 1,000 once the facility reaches full production..Premier Doug Ford called the investment a turning point for the region and momentum for Ontario’s electric vehicle strategy. "This is a game changer, not just for the community, but for Ontario and Canada," Ford said. "We’re creating the environment for companies to come here and invest."Economic Development Minister Vic Fedeli confirmed the provincial loan, framing it as part of a wider plan to attract foreign investment to the province.He said Ontario has secured more than $110 billion in private industrial investment since 2019, much of it tied to automotive electrification. "Ontario has become a reliable and predictable destination for companies in a very uncertain global landscape," Fedeli said..The new facility will be located near Volkswagen-owned PowerCo’s EV battery plant now under construction. Officials acknowledged the proximity could attract additional suppliers and create a regional cluster tied to electric vehicle manufacturing.Reporters questioned the scale of public funding and the additional burden on local infrastructure. Municipal officials have previously warned that major upgrades to water and wastewater systems will be required to support new industrial users and residential expansion.When asked whether the province would contribute further public money, Ford said the government would do what is necessary. "We will do anything we need to make sure this community prospers," he said..The announcement comes at a time of mixed developments in Canada’s EV manufacturing landscape.Earlier this month, General Motors paused electric vehicle production at its publicly supported CAMI plant in Ingersoll, raising concerns about long term market stability.Ford said each government agreement is structured differently but added the province is working with federal officials and industry to maintain operations where possible..ViaNode executives declined to comment on specific customer contracts but said Ontario’s labour force, resource base and political environment were key reasons for selecting the location."Canada offers stability, predictability and the conditions needed for long term industrial investment," one representative said.Construction timelines and expected production start dates for the facility have not yet been released.
