This factory would be located in Ontario and it could produce up to 50,000 tons of copper foil per year.
Copper foil is used to transmit current and discharge heat from lithium-ion batteries.
Talks are still ongoing and no decision has been taken yet.
With the popularisation of electric vehicles comes the need to produce more and more batteries, which is proving to be a very lucrative business for many companies.
In order to benefit from the economic fallout created by EVs and the production of their components, a number of countries have been trying to attract automakers and suppliers, including Canada.
In addition to the financial incentives offered by the government, a few factors make Canada an attractive place to build batteries and their components, such as the availability of raw minerals and the abundance of low-cost renewable energy.
The latest company to consider implanting a factory related to the EV industry is Chang Chun Petrochemical Co., a Taiwanese industrial company that produces all sorts of chemicals, plastics, and textiles.
Chang Chun is looking at the possibility of opening a new factory in Ontario to produce copper foil which it will sell to EV battery makers.
According to the company, its goals are to have this new facility operational by 2026 with a production capacity of 50,000 tons of copper foil per year.
Used in lithium-ion batteries, this material serves two purposes since it can carry current between the cells while also discharging heat from the battery.
Since the province of Ontario has received over $25 billion in investments related to the battery supply chain over the last two-and-a-half years, it can attract new companies such as Chang Chun who will be able to sell their products to local battery manufacturers.
Lobbyists are currently talking with both the federal and provincial governments in order to secure funding and incentives in exchange for the economic opportunities that will be created by the new factory.
Having said that, the deal has yet to be confirmed, so if both parties fail to reach an agreement, Chang Chun might decide to abandon the project after all.
Source: Automotive News Canada