(Kingston) The federal and Ontario governments announced Monday that they will jointly invest nearly a billion dollars in an electric vehicle battery component factory in eastern Ontario.

The Umicore facility, located in Loyalist Township, worth up to 2.761 billion, will build cathode active materials and precursor cathode active materials.

Ministers announced Monday that Ottawa will invest $551.3 million in the project, and Ontario will spend up to $424.6 million in capital costs.

Ontario Economic Development Minister Vic Fedeli said production is expected to begin in early 2026, and with 600 direct employees, the plant is expected to produce enough battery materials to power 800,000 vehicles electric per year.

Federal Minister of Innovation, Science and Industry François-Philippe Champagne said Umicore’s facilities in Belgium will bring significant economic benefits to Ontario and strengthen Canada’s position in as a “green supplier of choice”.

Two electric vehicle battery factories are also under construction in Ontario, in St. Thomas and Windsor.