The electric vehicle industry in North America might just turn its attention to St. Thomas.
Manufacturers of electric and hybrid vehicles in the U. S. are eager to move away from a supply chain dominated by China, and analysts believe suppliers in St. Thomas will attract interest from across the automotive sector in North America.
“Reliable, local sources that will get products to battery manufacturers will be necessary,” said Sam Fiorani, an auto industry analyst at Auto Forecast Solutions in the U. S.
Vianode, a company producing synthetic graphite and currently constructing a $3.2-billion plant in St. Thomas, anticipates creating 300 jobs when it opens in 2028.
This facility will be the only synthetic graphite manufacturer on the continent, filling a critical need for EV battery assembly components that are currently sourced entirely from China.
“There will be a need for this product,” Fiorani added. “Anyone providing parts to a supply chain for battery technology that does not include China is in a good position going forward.”
At present, North American electric vehicle battery producers rely on imports for 100 percent of their graphite from Asia.
Synthetic graphite is preferred during manufacturing, and it’s essential for both hybrid and fully electric batteries, suggesting high demand for the product made in St. Thomas, according to Brendan Sweeney, director of the Trillium Network for Advanced Manufacturing, an advocacy group for manufacturers.
“This plant can supply the entire electrified vehicle sector. It is encouraging to see that it isn’t just another ‘all our eggs are in one basket’ operation; it has reliable customers,” Sweeney said.
“The technology that is preferred right now is hybrid because it’s affordable.”
Graphite serves as the primary material within electric batteries, with manufacturers favoring synthetic over natural varieties due to specific qualities regarding how it cleaves and flakes; these characteristics make it ideal for production. “This announcement from Vianode is very promising and may have long-term implications,” Sweeney remarked.
This year has seen strong sales of electric vehicles in the U. S., driven by consumers rushing to purchase before a $7,500 incentive ended last month. In just three quarters this year, U. S. electric vehicle sales hit 1,044,553 units according to Cox Automotive’s website; projections show nearly 1.3 million units sold next year.
However, there was a significant drop-off afterward as October saw EV sales plummet to around five percent of total vehicle sales nationwide after hitting over 12 percent back in September, as reported by Inside EVs’ website.
“We will still see growth but expect market adjustments – balancing supply with demand,” Fiorani noted.
Vianode plans to produce low-emission synthetic anode graphite crucial for lithium-ion batteries found not only in electric vehicles but also various industrial uses. The site spans 140 acres within Yarmouth Yards-a 1,500-acre industrial park home also to Power Co-with preparations underway near Ron Mc Neil Line and Yarmouth Centre Road.
“Ontario and Canada have developed an impressive auto supply chain alongside infrastructure dedicated to lithium-ion batteries,” Vianode CEO Burkhard Straube stated during their announcement.
“Our investment here in St. Thomas aims at addressing challenges faced by Western Ontario and Canada while establishing a resilient supply chain within G7 nations concerning critical minerals-closing gaps along the automotive value chain.”
The Power Co facility-worth $7 billion-is set up by Volkswagen with plans to open its doors in St. Thomas by 2027 while providing around 3,000 job opportunities there.
Fiorani also shared insights about Cami Assembly plant’s future located at Ingersoll where GM likely won’t finalize decisions until trade agreements between Canada, Mexico, and the U. S.-the free-trade agreement known as CUSMA-are resolved before its expiration date set for July 2026.
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