Doug Ford speaks at the groundbreaking for the new Vianode $3.2 billion synthetic graphite factory in St. Thomas on Thursday. (Credit: Mike Hensen/The /Postmedia Network) A Norwegian company that makes battery materials has announced plans to construct its first large-scale synthetic graphite plant in St. Thomas, Ontario, with a total investment of $3.2 billion, which includes a $670-million loan from the province and additional support from the federal government. Synthetic graphite is essential for various applications including batteries, semiconductors, nuclear reactors, steel production, and many defense and aerospace uses, all of which are experiencing increased demand. The Vianode AS facility is set to create around 300 jobs initially, with the potential to expand that number to 1,000 as it reaches its full capacity of producing 150,000 tonnes annually. A spokesperson for the company mentioned that the choice to build in St. Thomas was made long before any trade tensions arose between Canada and the U. S., following an extensive evaluation process. “A huge reason for choosing St. Thomas is the location in what they call ‘Automotive Alley,’ close to customers,” Caroline Schmailzl said. “But also there is clean energy available in St. Thomas, green energy which is really important.” Since graphite is recognized as a critical mineral by both Canada and the U. S., it hasn’t been significantly impacted by trade disputes between these nations, she noted. St. Thomas has become a focal point in Canada’s developing electric vehicle supply chain; Volkswagen AG’s subsidiary Power Co Canada Inc. has already begun construction on its significant battery cell manufacturing plant there. The city sits roughly midway between Windsor, Ontario-the traditional hub of Canada’s auto industry-and Oshawa, another key automotive center. Vianode also maintains an agreement with General Motors Co., which until recently was producing electric delivery vans in Ingersoll, located about a 40-minute drive eastward. GM has halted production due to disappointing sales and has been discussing future options for that plant with workers and local officials over recent weeks. Producing synthetic graphite involves heating raw materials to extremely high temperatures, which requires substantial amounts of electricity. Vianode has focused on creating synthetic graphite with carbon emissions that are 90 percent lower than typical industry levels. Schmailzl mentioned that Ontario’s power grid-drawing nearly 90 percent of its energy from nuclear plants, hydroelectric sources, wind farms, solar energy, and biofuels-was appealing for this project. In October, the company announced that preliminary engineering designs for the plant have been finalized and aims to kick off production by 2028. Initially planned output will be set at 35,000 tonnes per year. Last month, Export Development Canada expressed interest in providing up to $500 million in financing for this project while the Canada Infrastructure Bank also showed interest without disclosing specific amounts involved. Additionally, Germany may provide up to $300 million in support for this initiative. “North American supply chains are heavily reliant on graphite sourced from China,” Burkhard Straube, chief executive of Vianode said last month. “This scalable project is a key building block that aligns with recent shifts in trade policy.” Tim Hodgson, minister of energy and natural resources stated that this project fits into federal plans aimed at establishing a reliable critical minerals supply chain so Canada can serve as a supplier internationally. Vianode operates two smaller facilities in Norway producing synthetic graphite battery anodes since 2021 and another opened recently in 2024. “Look at the field behind us. This is going to be a booming area,” Ontario Premier Doug Ford stated during the press conference. “I truly believe in the EV sector; that’s where we’re headed globally too! We’ll ensure we lead worldwide when it comes to battery manufacturing and electric vehicles-just like we do with nuclear energy.” The“That’s how we’re approaching everything,”. Learn more here! Please note:This information may change over time.
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