Vehicle battery production behind big expansion at Cami: Sources
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The London region has landed its first battery plant to supply electric vehicles, sources say, as Cami Assembly breaks ground on a massive plant expansion.
The Ingersoll automaker, now making two versions of the BrightDrop fully electric cargo delivery van, has started building a 400,000-square-foot addition that will allow it to assemble batteries on site for its vans, said sources close to the plant.
“This is incredible,” said Brendan Sweeney, managing director of the Trillium Network for Advanced Manufacturing, an industry advocacy group. “It makes sense. They have the space, they have the workforce.”
And they have demand, because plant owner GM Canada has received orders for the BrightDrop from Hertz, Walmart, FedEx, Verizon and Merchants Fleet, a fleet management company in the U.S., as well as DHL Canada.
“This is very exciting. To build 400,000 square feet, it’s very big. It is substantial. It’s a major investment,” Sweeney said.
GM Canada officials declined comment on what work will be done when the expansion is complete, but confirmed it will be related to BrightDrop production.
“It does relate to what we’re doing with regard to the BrightDrop. We’re continuing to work with the Ontario and federal governments on a variety of different possibilities, but I’m not in the position to comment on this,” said David Paterson, vice-president at GM Canada.
“I understand people are speculating on all types of things. It’s related to the conversion of the plant for BrightDrop.”
Cami will assemble the BrightDrop Zevo 600, a large cargo van, and a smaller version, the EV410. Both will travel about 400 kilometres on a battery charge.
Sources close to Cami suggest it’s likely the plant will source various battery parts and complete final assembly on site for installation in the BrightDrop.
“I would say we’re really excited to make such an investment, and with the change taking place in the electrification conversion in the auto sector,” Paterson said. “Cami is the very first Canadian plant for electric vehicles. It’s pretty exciting.”
The union representing Cami workers also declined comment, but it would not be surprised if battery production shifts to Cami, said Mike Van Boekel, chairperson of Unifor Local 88. “That makes sense. That would be great news for Ingersoll and the surrounding area.”
The job site at Cami is populated with construction workers and the talk at the plant is that it will be home to battery manufacturing, said James Hueston, an official with Local 1946 of the carpenters’ union in London.
“We have a significant number of workers there and we have heard the same rumours, that it’s a battery plant,” he said.
EllisDon is the contractor on site, Hueston said.
The town of Ingersoll approved a site plan proposal from GM Canada for the expansion and issued a building permit, with the document saying only that it is for a “cross-docking” facility, used in shipping and receiving goods.
“Ingersoll is very happy GM is building a 400,000 square foot expansion,” Mayor Brian Petrie said. “It’s very exciting that we have this sort of investment from one of our largest employers. It will have a positive ripple effect throughout the economy.”
GM has a battery plant in Ohio and plans to build at least three more. The automaker plans to shift all light-duty vehicle production to fully electric by 2035.
There are about 300 workers employed at Cami as production begins, but by February, all 1,500 employees should be back to work, rotating shifts as they are trained in the new technology at what is, essentially, an all new plant.
It’s not yet known how many workers will be needed for any production increase.
“There’s a very good labour force there, an experienced automotive workforce” that can work in battery production, Sweeney said. “There are a few thousand people with experience in assembling auto parts and this would be one of the best manufacturing jobs in the region.”
In December, at the official launch of the BrightDrop, GM announced it already has about two years of orders on the books.
GM has invested more than $1 billion to retool the Cami plant for EV production and another $1 billion retooling one of its Oshawa plants, as the federal and provincial governments combined to contribute more than $500 million for the two plants.
In March, Stellantis, formerly Chrysler, announced it will invest $5 billion to build a new EV battery plant in Windsor with a Korean partner. The 4.5 million-square-foot plant will employ about 2,500, and is expected to open in 2024.
ndebono@postmedia.com
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