Ford will retool its plant in Ontario to produce electric vehicles.
In 2024, the Ford plant in Ontario will start producing batteries for electric cars.
On Tuesday, Ford Motor Company announced that it will begin retooling its SUV assembly plant in Oakville, Ontario next year to produce electric vehicles. The company had made this promise to the Canadian union, Unifor, during contract negotiations in 2020.
Ford plans to begin updating the Oakville facility in the second quarter of 2024. Most of the plant's production workers will temporarily stop working until the launch of the new assembly line for electric vehicles at the end of 2024.
The factory complex recently turned 70 years old, making it the same age as some of its employees' grandparents. The building is in good condition, but it is morally outdated. CAD 1.8 billion will be allocated to renovate the complex, and a battery assembly plant will be added.
Currently, Canadian and American unions are concerned about whether employees will keep their jobs when transitioning from producing traditional cars to electric ones. Ford's answer is yes.
Industrialists themselves are worried about whether they can produce electric batteries in the necessary quantities and with compliance with all quality and environmental requirements. If the quality of the products meets US criteria, factories can receive reimbursement for part of the production costs and other benefits. Ford CEO Jim Farley says the company plans to produce 2 million electric vehicles worldwide by 2026.
It is worth noting that contrary to popular belief, electric batteries can be recycled and even reused. Some recycling methods allow up to 95% of materials to be reclaimed. However, all recycling methods are currently unpopular and not established on an industrial scale, making them more expensive. Experts believe that as the popularity of electric vehicles grows, the recycling of their components will become more accessible and cheaper.
Electric vehicle production will help Canada improve its position in the low-carbon economy, especially if the country can establish the mining of an important element of electric batteries — graphite.
