The project will receive more than $65 million in combined support from all three levels of government

Goodyear, one of the world’s largest tire manufacturers, is investing over $575 million to modernize and expand its southeastern Ontario plant with a major focus on producing tires for electric vehicles (EV).

The expansion at Goodyear Canada’s existing facility in Napanee, Ont., includes new equipment and technology. Construction began earlier this year and is expected to be completed by mid-2027.

The Ohio-based tire manufacturer says the expansion is central to its objective to “create an energy-efficient, end-to-end manufacturing process” for EV tires and “increase its production capacity” to make all-terrain tires.

“[The] announcement reinforces our long-term commitment to Canada and enhances our agility and flexibility, positioning Goodyear to meet the evolving needs of our customers now and in the future,” says Mark Stewart, CEO and president of Goodyear, in a press statement.

Another of Goodyear’s objectives is to make the Napanee plant net-zero within the next two decades. The expansion may reduce the plant’s emissions by 10 per cent by 2030, with a goal of reaching net-zero by 2040.

Additionally, the expansion will maintain and create 200 new manufacturing jobs, bringing the total number of jobs at the Napanee plant to over 1,000.

Government support

Both the federal and Ontario provincial governments are contributing funds to the project.

Ottawa is kicking in $44.3 million through the federal Strategic Innovation Fund to expand the facility, while Invest Ontario will contribute $20 million to support the adoption of innovative technologies and skills training programs at the plant.

Additionally, the Town of Greater Napanee, the Township of Stone Mills and the County of Lennox and Addington will provide roughly $2 million in incentives over four years through an Industrial Community Improvement Plan.

The Goodyear investment is the latest in Canada’s broader efforts to further expand its manufacturing capacity for key EV components and solidify Ontario’s position as a key player in the EV supply chain.

“Goodyear Canada’s investment is another significant boost to Ontario’s growing electric vehicle sector, building on the billions of dollars that have been invested in the sector over the past four years,” said Ontario premier Doug Ford in a press release. “Across Ontario, we’re seeing major investments and new jobs created as we build out our end-to-end EV supply chain.”

Prime Minister Trudeau echoed these sentiments, highlighting Canada’s strong appeal to global investors.

“Companies from across the world are choosing Canada. It’s another vote of confidence in Canada’s auto sector workers,” he said.

Goodyear EV tire lineup

It is not yet clear which of Goodyear’s lines of EV tires will be produced in Napanee. Electric Autonomy reached out to the company for comment but did not receive a response before publication.

In May of this year, Goodyear introduced a new ElectricDrive 2 all-season tire line, specifically designed for EV drivers in North America. The ElectricDrive 2 series is available in 17 different sizes, making it the company’s largest line for EVs. It is compatible with vehicle models such as the Tesla Model Y, Ford Mustang Mach-E and Chevy Bolt.

The tires are made with sustainable materials, feature improved rolling resistance and offer long-lasting treads, says Goodyear. Additionally, the tires include SoundComfort Technology, which reduces interior vehicle noise and an asymmetric tread pattern for better handling in both wet and dry conditions.

Earlier in 2023, Goodyear also launched the Urban Max BSA tire line, designed specifically for electric buses.