Canada's Manufacturers Plot New Projects for Tech, Other Goods

Researched by Industrial Info Resources (Sugar Land, Texas)--As tariff troubles continue to roil Canadian industry, manufacturers in the northern neighbor are trying to understand how it will affect their bottom lines. Several of them have major projects ready to launch in the coming months. Industrial Info is tracking more than US$6 billion worth of projects in Canada's Industrial Manufacturing Industry that are set to kick off in the second quarter, with the bulk of the spending attributed to manufacturing projects for electric-vehicle (EV) batteries.

Click on the image at right for a graph detailing the top 10 parent companies for projects in Canada's Industrial Manufacturing Industry that are set to begin construction from April through June.

The largest of these projects, however, is on shaky ground. Northvolt AB (Stockholm, Sweden) announced in September 2023 it would build a US$5 billion EV battery-manufacturing plant in Saint-Basile-Le-Grand, Quebec, about 15 miles east of Montreal, but the company since has faced a host of financial problems. Northvolt filed for bankruptcy in the U.S. in December, in hopes of shoring up funds to stabilize its main European manufacturing operation--which collapsed last month, when the company filed for bankruptcy in Sweden.

In a statement to The Canadian Press, Northvolt said it would "honor obligations" to its employees, but would not confirm if construction on the Quebec project would begin in the second quarter, as currently scheduled. The company previously said it would bring the plant online in mid-2026, with an initial annual production capacity of 30 gigawatt-hours (GWh). Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project and Plant databases can learn more from a detailed project report and plant profile.

The project has hefty government financial backing, according to electrek, with Quebec contributing C$2.9 billion (US$2.06 billion) and the Canadian federal government contributing C$4.4 billion (US$3.13 billion). For more information on Northvolt's troubles, see December 2, 2024, article - EV Battery Maker Northvolt Files for U.S. Bankruptcy.

At least one other EV battery project has a much healthier chance of beginning construction this quarter, as planned: Electrovaya Incorporated's (NASDAQ:ELVA) (Mississauga, Ontario) US$22 million upgrade to its lithium-ion cell and battery plant in Mississauga, which will improve machinery at the facility run through artificial intelligence (AI). Electrovaya received a C$2 million (US$1.45 million) investment from the Government of Canada, through the Federal Economic Development Agency for Southern Ontario, for the project in October. Subscribers can learn more from a detailed project report and plant profile.

Canada's tech industry also is seeing some development in its data center market. Yondr Group Holdings B.V. (Amsterdam, Netherlands) could begin work on a US$270 million data center in Toronto, a three-story, 27-megawatt (MW) facility scheduled to be fully operational by mid-2026. Subscribers can learn more from a detailed project report and plant profile.

This is Yondr's first development in Canada. "Our Toronto data center forms a key part of our strategy for North America, where there is an urgent need to increase capacity to support the digital economy," said Kent Andersson, the program controls director for Yondr Group's North American subsidiary.

Other manufacturing projects will cater to everyday needs. Cancoil Thermal Corporation (Kingston, Ontario) is preparing for an US$8 million expansion of its plant in Kingston, to boost its production of heat exchangers and finned tube coils for commercial uses, while Logiflex Incorporated (Sherbrooke, Quebec) is planning a US$9 million equipment addition at its factory in Sherbrooke, which makes office furniture. Both projects are scheduled to wrap up toward the end of the year. Subscribers can learn more from detailed reports on the Kingston and Sherbrooke projects.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of projects in Canada's Industrial Manufacturing Industry that are set to kick off in the second quarter.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).