Ontario kicks in $8.8 million for three automotive and battery companies, including a new addition to the Canadian EV supply chain

The Ontario government is putting a combined $8.8 million into three auto sector supplier companies to make EV and battery-related components in the Windsor-Essex region for the Stellantis’ NextStar gigafactory and other manufacturers.

DS Actimo Canada, Kautex Textron and Integrity Tool & Mold Inc. are receiving $5 million, $1.5 million and $2.3 million, respectively.

“Thanks to investments by DS Actimo, Integrity Tool & Mold Inc. and Kautex Windsor, hundreds of new, local jobs will be created in Windsor-Essex,” reads a statement from Andrew Dowie, member of parliament for Windsor—Tecumseh.

Combined, the projects will support 133 new jobs. The money is being meted out through the government’s Regional Development Program, which, “supports eligible small- and medium-sized businesses investing in new equipment and training to expand operations in these regions,” according to the government’s website.

Windsor-Essex supporting suppliers

EV and battery manufacturing is ramping up in Windsor-Essex and the Stellantis-LG Energy Solution gigafactory, operated under the companies’ joint venture, NextStar Energy, will be a major supplier and employment draw in the area.

NextStar announced it’s $5-billion factory in March 2022. Since the anticipation has been drawing R&D and new suppliers to the communities surrounding the factory.

In June 2022, South Korea-based DongShin Motech Ltd. announced a $90-million investment into a new battery casing facility. In February 2022, American global auto parts manufacturer and supplier, Flex-N-Gate, announced it would open a $20-million R&D project called the Flex-Ion Battery Innovation Centre with support from the Ontario government.

Kautex Textron and Integrity Tool & Mold are already established entities in the Windsor region.

Kautex is a plastic fuel tank manufacturer. It is investing $23 million of its own money in building a new battery skid plate manufacturing facility. It will use advanced composite materials to produce battery casings for EVs.

The German-headquartered company say the government funding will allow it to “build an entirely new line…Pentatonic Underbody Protection.”

Integrity Tool & Mold is an Ontario-based parts supplier to the auto industry. In addition to the government funding, the company is investing $15.6 million to update its facility to increase production capacity.

A new supplier arrival

While those are familiar names in Windsor-Essex , DS Actimo is a new arrival to Canada.

The South Korean company is putting over $60 million into building a 107,000-square-foot facility in Windsor. It will manufacture battery cell module cases with wiring components for EV batteries.

It’s the company’s first North American facility.

“We want to thank the Ontario government for their recognition and support of DS Actimo’s investment through the Regional Development Program. Our new facility in Windsor represents our expansion into the North American marketplace for our production of components for EV batteries,” writes Chunbok Choi,
CEO of DS Actimo Canada Inc.

Supporting future growth

The next intake for applications to the government’s Regional Development Program (RDP) opened April 11, 2024.

The government is also offering an Advanced Manufacturing and Innovation Competitiveness (AMIC) stream of the RDP. It will provide “firms with the financial support and tools needed to improve competitiveness, while strengthening essential supply chains.”