$3.2B Investment for Largest Synthetic Graphite Plant in Ontario

A Norwegian company is set to invest $3.2 billion to create North America’s biggest synthetic graphite manufacturing plant in St. Thomas, Ontario, aiming to generate as many as 1,000 jobs.

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

Straube mentioned that the new facility will help tackle a key issue in the supply chain for a material that’s vital for making lithium-ion batteries.

“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.”

According to Straube, synthetic graphite from China is offered at “unsustainably low prices” aimed at keeping North American businesses out of the market.

Straube explained that choosing St. Thomas was logical because the Yarmouth Yards industrial area, which is currently being developed, will provide an ideal location with access to hydro power necessary for production.

Vianode will occupy 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/ )

Yarmouth is expected to be part of what’s referred to as automotive alley-businesses surrounding Volkswagen’s significant Power Co battery plant where construction started last month.

Straube noted that Canada’s stability “both economically and politically” reinforced St. Thomas as the perfect site for their operations.

The Ontario government plans to extend a $670-million loan to Vianode to assist with constructing the site.

‘Well-paid’ jobs coming

Straube indicated that once production kicks off, the facility will create 300 “well-paid” jobs initially and grow to 1,000 jobs when it reaches full capacity.

Synthetic graphite isn’t mined; it’s actually a byproduct from petrochemical processes requiring high heat and substantial energy input. Nevertheless, Straube affirmed that his company can produce graphite sustainably.

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

Production at the facility is expected to commence in 2027 with an aim of reaching up to 150,000 tonnes annually once fully operational.

This investment is ‘a game-changer,’ says Ford

Ford remarked that the plant’s output would be sufficient for producing two million electric vehicles each year. He also highlighted its potential spinoff advantages for the area during challenging times for Canadian manufacturing due to trade tensions with the United States.

“It’s not just this investment,” Ford commented. “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 choice for St. Thomas wasn’t directly influenced by Volkswagen’s decision on building its large facility nearby.

Both Ford and Straube expressed confidence in the future of the EV sector despite setbacks experienced at General Motors’ CAMI Assembly plant located close by 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)

The GM plant was updated three years ago with substantial public funding aiming at switching production towards an electric delivery van model but halted operations earlier this spring before announcing permanent closure due to poor customer demand last October.

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

Ford added he’s discussing options with both federal officials and GM about how vehicle production could continue at CAMI.

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

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