The federal and Ontario governments are giving Goodyear Tire $64 million to expand its manufacturing plant in Napanee, Ont., and help the plant reach net-zero emissions by 2040.
Goodyear is spending $575 million to expand and modernize the plant and increase tire production, including for electric vehicles (EVs) and all-terrain vehicles, according to an Aug. 12 government press release. The federal government will contribute over $44 million , while Ontario is adding $20 million.
The federal government said the project will contribute to the federal goal of a net-zero economy by 2050.
The Goodyear plant expansion will create 200 manufacturing jobs by 2027 as well as over 1,000 jobs for Napanee, according to the government.
Ontario Premier Doug Ford, who attended a press conference with Prime Minister Justin Trudeau, said, “Goodyear Canada’s investment is another significant boost to Ontario’s growing electric vehicle sector, building on the billions of dollars that have been invested in the sector over the past four years.”
In recent years, the federal government, along with the provinces of Ontario and Quebec, has announced more than $50 billion in subsidies to automakers for EV and battery manufacturing in Canada, which includes support for major auto companies like Volkswagen, Stellantis, and Honda.
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A September 2023 report from the Parliamentary Budget Officer (PBO) said the federal and Ontario governments have pledged $28.2 billion to support Volkswagen and Stellantis-LG Energy Solutions. In 2022, Ontario also announced $131.6 million for Honda Canada to upgrade and retool plants in Alliston, Ont., for the production of electric and hybrid vehicles.
Additionally, the federal and Quebec governments have announced up to $4.6 billion in subsidies for the Swedish EV battery company Northvolt, according to another PBO report.
One of the subsidized EV battery manufacturers recently halted building a plant in Ontario due to declining demand for EVs.
In a July 26 press release, Umicore Rechargeable Battery Materials Canada Inc. said it would take “immediate action” to deal with the “recent significant slowdown in short- and medium-term EV growth projections affecting its activities.” This includes delaying the construction of its battery materials plant in Loyalist Township, about 25 kilometres northwest of Kingston.
Umicore’s project, estimated to cost nearly $2.8 billion, received funding from both the federal and Ontario governments. The federal government invested up to about $551 million, while Ontario contributed around $425 million, according to an October 2023 press release.
