Ford Motor Co. (F) is investing $1.8 billion to transform its manufacturing plant in Oakville, Ontario into an electric vehicle production hub.
The Detroit-based automaker said it will begin transitioning its Oakville auto plant in the second quarter of 2024 and plans to start producing electric vehicles at the Ontario site in 2025.
The manufacturing plant will be renamed the “Oakville Electric Vehicle Complex,” and will include a new 407,000 square-foot plant where battery packs will be assembled.
Ford said it plans to produce passenger electric vehicles in Canada for the North American market but did not specify which models will be manufactured in Oakville.
Ford has allocated more than $50 billion U.S. to transition its fleet to electric vehicles. The automaker has set itself a target to produce two million electric vehicles a year by the end of 2026.
The Oakville assembly plant currently produces the gasoline powered Ford Edge and Lincoln Nautilus sport utility vehicles (SUVs).
Ford first indicated that it would build electric vehicles in Canada back in 2020 during negotiations with its labour unions but had not provided details on its plans until now.
Ford’s stock has decreased 16% over the last year to trade at $12.87 U.S. per share.
