Ontario's getting a new factory to build EV components

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Ontario’s become a hotbed of electric vehicle news recently, first with the announcement of a $13 billion federal subsidy for an EV battery plant in St. Thomas, and then reports that Stellantis won’t finish building the battery plant it started to construct in Windsor unless it gets a similar deal.

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Now there’s a third – but much quieter – entry into the EV supply field. Linamar Corp., a homegrown auto parts supplier that operates globally but is based in Guelph, said it is building a facility in Welland, near Niagara Falls, that will make large structural parts for EVs. The company made the announcement in mid-May during its first-quarter financial report, and said the factory should be up and running by February 2025.

The facility will use 6,100-ton high-pressure die-cast machines, known as Giga presses. The presses can create single large components from molten aluminum under high pressure, such as a vehicle underbody, instead of the traditional method of welding smaller pieces together. The company said the presses are “critical to efficiently lightweighting and simplifying complex assemblies for electrified vehicles.”

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The factory will have three presses, with the first slated for installation in January 2024 and with production to start a year later. Linamar CEO Linda Hasenfratz said it already has a contract for its first products. The plant will employ about 200 people.

Hasenfratz didn’t disclose which automakers it would be supplying, but said it will be the first Tier 1 supplier outside of Asia to invest in the technology. Tier 1 suppliers make components that go directly to automakers to use in their vehicle assembly plants.

“Giga castings are the next step in the evolution of our high-pressure die-casting strategy,” said Linamar president Jim Jarrell. “The Welland Giga casting factory will have capabilities few companies in the world possess. There is an increasing trend of cast aluminum being used in vehicle architectures, particularly (EVs).”

Giga presses were pioneered by Tesla and were developed by Idra, an Italian-based company, starting in 2016. Tesla uses Giga presses in all its factories and recently ordered a 9,000-ton press, the newest and largest from Idra, which Elon Musk said will be used to build the Cybertruck.

Linamar was founded in 1964 by Frank Hasenfratz, which started as a one-man machine shop in his home basement. It now has facilities and partnerships in Canada, the U.S., Europe and South Asia, and makes components for automobiles, farm and construction equipment, and medical devices.