Canadian governments to invest in retooling a local Ford plant to produce electric vehicles and batteries

The Canadian federal and Ontario governments are collectively investing more than $500 million to support the production of electric vehicles and batteries at a Ford plant in Oakville, Ontario.

Officials called the joint investment one of the first steps in building a next-generation auto industry in Canada.

The move is part of a three-year deal between the U.S. automaker and the Unifor union that also includes wage increases, bonuses, and other benefits for Canadian factory workers.

The Oakville plant currently employs about 3,400 workers. In a release, the federal government says the plan will secure 5,400 jobs across the company’s Canadian workforce and supply chain.

“For the auto sector, for the environment, this is a win-win,” said Prime Minister Justin Trudeau.

The funding is also part of the government’s commitment to invest in the transition to a clean, renewable-energy economy, with the goal of reaching net-zero carbon emissions by 2050.

The federal government also hopes the new investment will help boost home-grown mining companies that produce the metals used to make the batteries for electric vehicles.