Locations
Guelph, Ont.-based Linamar Corporation (LNR-T) plans to invest $1.1 billion into the development and manufacturing of auto parts, particularly for electric vehicles (EVs), and development of EV batteries in Ontario.
The expansion plan is geared toward parts such as powertrains and technologies for hybrid and electric cars, and parts manufacturing and semiconductor packaging methods for EV batteries to enhance vehicle range and reduce charging times.
Other key elements are expanding the production of Linmar’s eAxle — an electric powertrain system used in EVs and hybrid vehicles — and funding research into hydrogen fuel cell and battery storage technologies.
Linamar produces auto parts for the general mobility and industrial segments, and manufactures medical equipment. It has over 33,000 employees worldwide, according to a release, and expects to add 2,000 full-time jobs with its latest investment, which is being supported by the Canadian and Ontario governments.
The investments will go toward its facilities in Guelph, Salford (near Ingersoll), Welland and Windsor, according to the federal government, which is contributing up to $169.4 million. Ontario's government is adding a $100-million grant.
"Linamar has long shown its commitment to innovation by investing in product design, new capabilities and manufacturing capacity to lead advancements in mobility. Linamar is focused on developing products for every type of vehicle propulsion and for systems that are propulsion agnostic in the vehicle,” Linda Hasenfratz, the executive chair of Linamar, said in the announcement.
Linamar’s electrification plans
Like much of the auto industry, Linamar has taken note of the transition from internal combustion engines powered by fossil fuels to batteries and electricity.
EVs were named a key growth opportunity for the company in a 2024 investor presentation, a sector it was addressing years ago.
In 2021, Linamar formed eLIN Product Solutions Group, which focused on power generation, power storage, propulsion systems, and structural and chassis developments for EVs in its businesses.
The company by then had been developing electric axles and EV parts, partnered with Ballard Power Systems for fuel cell EV propulsion systems, and integrated Exro Technologies Inc.’s inverter technology into its electric axle and gear box.
A “dedicated group became necessary to accelerate and deliver competitive electrified solutions to the markets Linamar operates in both today and in the future,” Jim Jarrell, Linamar’s then-president and COO, now CEO and president, said in the announcement of eLin’s formation.
Ontario’s EV investments
Ontario has attracted tens of billions of dollars in investment for its auto sector since 2020, according to the provincial government, and EVs have been central to the strategy. Bringing the auto supply chain closer to home has been a major emphasis of the plan, with trade disruptions such as the COVID pandemic and the possibility of blanket U.S. tariffs challenging the province’s industry.
Honda, for example, said it would invest $15 billion for four new manufacturing sites focused on EVs.
A $5-billion joint venture between Stellantis and LG Energy Solutions, and a $7-billion project by Volkswagen’s PowerCo are some of the major EV battery factory investments in Ontario.
But it has not been entirely smooth sailing. Construction on Umicore's EV battery facility was halted in July 2024, with the Belgian company citing a slowing EV market for the pause. Ford also cancelled plans to shift its Oakville assembly plant to electric SUV production.
Industry Events
Fredericton, NB
Locations
