Goodyear Canada to invest 500M in small Ontario city plant expansion for EV Tire production

The Canadian government and the province of Ontario are supporting Goodyear Canada’s investment of over half a billion dollars to expand and modernize its southeastern Ontario tire plant for the production of EV and all-terrain vehicle tires.

KEY POINTS

Goodyear Canada is investing $575 million in EV and all-terrain tires, supported by $44.3 million from the federal government and $20 million from Invest Ontario.

This investment highlights the growing demand for specialized tires that can handle the unique challenges of EVs, such as increased weight and instant torque.

But what does this mean for the future of Canada's automotive industry?

Goodyear Canada is expanding its Napanee facility with an investment of over $575 million to scale up the production of tires specifically designed for EVs and all-terrain vehicles.

This announcement furthers Ontario “as one of the strongest auto manufacturing hubs in North America and a leader in the global transition to EVs,” according to a news release.

The province has been praised for its “complete automotive supply chain, supported by a skilled labor force, abundant critical minerals, and a strong tech ecosystem,” according to the news release.

Canada’s automotive sector

Canada’s automotive sector produces over 1.5 million vehicles annually—equivalent to one every 21 seconds. The sector supports nearly 550,000 direct and indirect jobs and contributed $18 billion to Canada’s GDP in 2023 alone, making it one of the nation’s top export industries.

The expansion of Goodyear Canada’s Napanee plant will further enhance Ontario’s capacity to produce essential EV components, reinforcing the province’s role in the global EV supply chain.

The company will receive federal funding of up to $44.3 million from the Strategic Innovation Fund for this expansion, with an additional potential investment of $20 million from the Invest Ontario Fund.

This expansion will modernize the plant and is expected to create over 200 new jobs, providing a significant boost to the local economy. While the expansion is promising news for Ontario and the environment, some may wonder why such an investment is necessary.

Why EVs require specialized tires

Electric vehicles differ from traditional cars in several ways, and their tires are no exception. EVs are heavier than conventional vehicles of the same size due to their large batteries, necessitating tires that can handle the extra weight.

Electric vehicle sales are growing quickly. (Michael Fousert/Unsplash)

These tires are also designed to withstand the instant torque that EVs deliver when the accelerator is pressed. Rapid acceleration can cause increased wear and tear on tires, making it essential for them to be more durable than standard tires.

Simply put, regular tires won’t suffice for an electric vehicle.

They must be specially engineered to meet the unique demands of EVs. This is why Goodyear’s investment in producing EV-specific tires is crucial—it ensures that drivers have the appropriate equipment for their vehicles, contributing to safer and more efficient travel.

Goodyear’s new focus on EV and all-terrain tires positions Ontario as a significant contributor to the global electric vehicle movement. It also helps to strengthen the province’s end-to-end EV supply chain, which is a win for Canada’s economy as a whole.