The joint investment of nearly $65 million from the federal and Ontario governments will support the expansion of Goodyear Tire’s manufacturing plant in Napanee, Ontario.
Goodyear’s $575 million project is focused on improving tire production for electric vehicles (EVs) and all-terrain vehicles as per an Aug. 12 government press release. The federal government will provide over $44 million in funding, with an additional $20 million from Ontario.
The expansion project is set to help Goodyear’s Napanee plant achieve net-zero emissions by 2040, aligning with the federal target of a net-zero economy by 2050.
During an Aug. 12 press conference, Prime Minister Justin Trudeau mentioned that the Goodyear plant expansion will create jobs. The project is anticipated to generate 200 new jobs by 2027, adding to a total of over 1,000 jobs.
Ontario Premier Doug Ford also emphasized the investments in the EV sector at the press conference, noting that “Goodyear Canada’s investment is another significant boost to Ontario’s growing electric vehicle sector.”
In recent years, the federal and provincial governments have committed more than $50 billion in subsidies for automakers in Canada, supporting EV and battery manufacturing for companies like Volkswagen, Stellantis, and Honda.
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According to a September 2023 report from the Parliamentary Budget Officer (PBO), the federal and Ontario governments have committed $28.2 billion to support Volkswagen and Stellantis-LG Energy Solutions. Ontario also granted $131.6 million to Honda Canada in 2022 for an Ontario plant producing electric and hybrid vehicles.
Furthermore, the federal and Quebec governments announced up to $4.6 billion in subsidies for the Swedish EV battery company Northvolt, as stated in another PBO report.
One of the subsidized EV battery manufacturers has halted construction on a plant in Ontario due to decreased demand for EVs.
In a July 26 press release, Umicore Rechargeable Battery Materials Canada Inc. announced actions to address the slowdown in EV growth projections, including delaying the construction of its battery materials plant in Loyalist Township.
Umicore’s project, with an estimated cost of nearly $2.8 billion, received funding from both the federal and Ontario governments. The federal government contributed around $551 million, while Ontario provided approximately $425 million, according to an October 2023 press release.
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