The Guelph-based company’s investment will go, in part, towards Linamar EV product offerings including powertrains and battery packaging methods

Linamar Corporation is making a $1.1 billion investment in its Ontario operations — including manufacturing EV parts — the company announced today.

The Innovation Driving Green Technology Project will see investments into Linamar’s facilities in Guelph, Welland, Salford and Windsor. The project may yield up to 2,300 new jobs and protect 10,000 existing positions.

“The participation of both levels of government in this program is a great indication of their commitment to the Canadian automotive manufacturing sector” says Linda Hasenfratz, executive chair of Linamar Corporation, in a press release.

“[It] helps ensure Canada and Ontario can successfully position itself as an industrial leader for the production of highly advanced automobiles within a rapidly changing global automotive market.”

The federal and Ontario governments are supporting the eye-watering investment with $169.4 million through the Strategic Innovation Fund and $100 million through Invest Ontario, respectively.

Investment areas

Linamar’s investment, Hasenfratz says, will support “products for every type of vehicle propulsion and for systems that are propulsion agnostic.”

This includes the development of EV powertrain technologies, semiconductor packaging processes for EV batteries and increased eAxle system production. As well, Linamar intends to invest in further advancements in hydrogen fuel cell and battery storage systems.

“Our government remains laser focused on positioning Ontario as a world-class jurisdiction for domestic and international companies to grow their businesses, promote innovation and build more resilient supply chains,” says Vic Fedeli, Ontario’s minister of Economic Development, Job Creation and Trade, in a press release.

“Linamar’s billion-dollar investment will not only create thousands of new, good-paying jobs for Ontario workers, it will catalyze economic growth.”

Looming tariffs

The threat of 25 per cent tariffs from the United States looms large for Canada’s auto sector stakeholders.

President Trump is threatening to impose tariffs as early as February 1.

Linamar’s homegrown investment comes at an opportune time for the Ontario and federal governments.

“At a time when we face a new administration in the White House and the potential threat of tariffs on Canadian goods, this investment will create good-paying jobs, strengthen our homegrown electric vehicle supply chain and accelerate the production of Ontario-made EVs,” says Premier Doug Ford, who has been one of the more vocal Canadian Premiers on the topic of retaliating against any U.S. tariffs.

“It will help ensure that the components needed for the cars of the future are made right here in Ontario, by Ontario workers.”

Linamar has not yet provided a timeline for their expansion and reaching scale.

The company is the second-largest auto parts manufacturer in Canada, after Magna International. Currently, it has 34 manufacturing and support locations across the country, 29 of them in the Guelph area.