Major Investment in Ontario for Synthetic Graphite Plant

A Norwegian firm plans to invest $3.2 billion to establish North America’s biggest synthetic graphite manufacturing plant in St. Thomas, Ontario, which is expected to create as many as 1,000 jobs.

Vianode’s project – announced last month – was detailed further at a news conference on Thursday that included politicians from all levels of government, such as Ontario Premier Doug Ford and Vianode CEO Burkhard Straube.

Straube mentioned that the new facility will help resolve a significant bottleneck in the supply chain for a material critical to lithium-ion battery production.

“We’re interested in investing in North America,” Straube stated. “There’s a huge deficit of synthetic graphite – all of it comes from China right now. It’s highly subsidized and not a level playing field.”

Straube noted that synthetic graphite from China is being sold at “unsustainably low prices” which makes it hard for North American companies to compete.

According to him, choosing St. Thomas was strategic because the Yarmouth Yards industrial area, currently being developed, will provide an ideal location with access to hydro power necessary for production.

Vianode will be located on 56 hectares in Yarmouth Yards, part of St. Thomas’s 600-hectare industrial park that will also accommodate the Power Co battery plant currently under construction. (Andrew Lupton/CBC News)

Yarmouth aims to be part of what’s referred to as the automotive alley surrounding Volkswagen’s large Power Co battery factory, where construction began last month.

Straube also pointed out that Canada’s “economic and political” stability played a crucial role in confirming St. Thomas as the best location for their site.

The Ontario government is providing a $670-million loan to Vianode for supporting the development of this site.

‘Highly paid’ jobs coming

Straube indicated that when production starts, the facility will initially create around 300 “highly paid” jobs, with that number increasing to 1,000 once full capacity is reached.

Synthetic graphite isn’t mined; it’s produced as a byproduct of the petrochemical industry through processes requiring high heat and considerable energy consumption. However, Straube assured that his company can manufacture graphite sustainably.

“We believe in sustainability and we believe strongly in local supply chains,” he said. “Our raw materials, which are primarily coke, will come from North American and Canadian sources.”

Production at the facility is projected to kick off in 2027, aiming for an output of up to 150,000 tonnes per year when fully operational.

Investment a ‘game-changer,’ Ford says

Ford remarked that the plant’s production would be sufficient for two million electric vehicles each year. He added it would provide additional benefits for the community during challenging times for Canadian manufacturing due to trade issues with the United States.

“It’s not just this investment,” Ford stated. “It’s reciprocal jobs around the community that’s really going to turn this whole area around. It brings jobs and wealth to the area. This is a game-changer.”

Straube clarified that Vianode’s decision to build in St. Thomas wasn’t directly linked to Volkswagen’s nearby factory development.

Both Ford and Straube expressed confidence about future prospects within the EV sector despite recent challenges faced at General Motors’ CAMI Assembly plant located nearby Ingersoll.

A drone image dated Oct. 2 shows foundation work underway at Power Co’s gigafactory site in northeast St. Thomas. (Handout Power Co Canada)

This plant had been retooled three years ago using public funding but suspended operations earlier this year before announcing its permanent closure due to insufficient customer demand.

“Every single contract is different,” Ford commented regarding GM’s situation in Ingersoll. “They signed a contract and they’ll be held accountable.”

Ford mentioned he’s discussing potential options with both federal authorities and GM aimed at continuing vehicle manufacturing at CAMI.

“Maybe we can build federal military vehicles as well,” he suggested. “There are all sorts of options but we’re going ensure we support those folks any way we can.”

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