Perspective Ontario - Automotive

ONTARIO AUTOMOTIVE SECTOR

AUTOMOTIVE CONNECTIVITY IS DRIVING THE FUTURE OF MOBILITY

100 YEARS OF INNOVATING THE AUTO BUSINESS

ONTARIO HAS AN INCREDIBLE SUPPLY CHAIN AND CAPACITY

ONTARIO LEADS IN INNOVATION AND START-UPS

WELCOME TO CANADA’S CORE FOR ELECTRIC VEHICLES

MINING MINERALS, CHEMICALS & PARTS

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Ontario has been driving Canada’s Automotive Sector for over 100 Years O

ntario is home to an expansive and innovative automotive industry that has been an essential part of the economy for more than a century. This industry employs hundreds of thousands of workers in the province and produces over 3.2 million vehicles annually, making it Canada’s largest manufacturing sector. With major plants in Oakville, Oshawa, Windsor, Alliston, and St. Thomas, Ontario’s automotive industry is a major source of jobs, economic opportunity and innovation for the province.

Ontario also has several key research organizations that are developing leading-edge technologies to improve safety and efficiency in the automotive sector. These organizations include the Automotive Parts Manufacturers Association (APMA), Automotive Research and Development Centre (ARDC), University of Waterloo – Centre for Automotive Research (CAR) and Canada’s Transportation Mobility Innovation Centre (CTMIC). Each organization works closely with the auto industry to develop new vehicles, parts, components and systems that help drive innovation in this sector.

Ontario’s Automotive Sector – From its inception to the Present Day Ontario’s automotive industry began in the late 19th century with the emergence of small-scale factories producing car parts. In 1903, Ontario’s first automobile was built and spurred further development of the Province’s automotive sector.

Ontario-based automakers experienced steady growth during the 20th century, and foreign investment in Ontario’s automotive sector during the 1980s solidified Ontario as one of North America’s leading car production centers. In recent years, Ontario’s automotive industry has seen tremendous growth due to ongoing advancement in technology and increased global competition.

Companies across Ontario are now manufacturing wider varieties of cars designed for research and development than ever before. From its early beginnings in the late 1800s all the way to present day, Ontario’s landscape of the automotive industry is undeniable proof of its world class achievement.

How the Automotive Industry is Creating Jobs and Boosting the Economy Ontario’s automotive sector is an integral part of the Ontario economy, helping create much-needed jobs and providing a boost to the local economy. The Ontario government has invested heavily in the sector, not only by attracting foreign investment into the Province but also by investing in new technology and production capacity.

As Ontario remains on track to be a global leader in advanced automotive manufacturing, the automotive sector will continue to contribute greatly to the economy while providing employment opportunities throughout Ontario.

Technologies Transforming the Automotive Cluster for a Greener Future Ontario’s automotive sector is rapidly transforming in order to achieve a greener future. Investments from both foreign and domestic corporations are driving the advancement of technologies such as green powertrains and connected systems.

Ontario is leading the charge towards sustainability, creating countless opportunities for economic growth across the entire province. By embracing cutting edge technology, Ontario stands on the brink of revolutionizing the global automotive sector, setting an example for other regions to follow.

The Ontario automotive industry has long been a vital economic driver in the province and shows no signs of slowing down. It is poised to continue to be an essential part of the economy for years to come with major plants across the province, leading-edge innovations from research organizations, and hundreds of thousands of jobs.

It’s remarkable how something that started over a hundred years ago has grown and adapted to become one of Canada’s most integral industries.

Looking ahead, there is great potential for even more advancement and growth.

With its dynamic range of businesses, technologies, and knowledgeable workers, Ontario’s automotive sector will continue to be a major source of innovation for the country for many years to come.

P e r s p e c t i v e TM 1464 Cornwall Rd, Suite 5, Oakville, ON L6J 7W5 Canada L6J 7W5 1-866-779-7712 | info@perspective.ca | perspective.ca

Publisher, CeO Steve Montague ViCe-PresiDeNT Ed Martin Editorial Contributors Meredith MacLeod, Sheetal Pinto, Catherine Gaudreau, Aurora Orchard, Nayha Hamid PerspectiveTM Ontario was produced independently of the Province of Ontario.

Contents are copyrighted and may not be reproduced without the written consent of Perspective Marketing Inc. The publisher is not liable for any views expressed in the articles and opinions do not necessarily reflect those of the publisher or the Province of Ontario.

For additional copies please email info@perspective.ca www.perspective.ca

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Brampton: Where the Future of the Automotive Industry Takes Hold

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rampton is one of Ontario’s leading hubs for electric vehicle supply chains.

As the city revs up its economy and workforce for a new era of transportation technology, the community welcomes the announcement that the federal and provincial governments along with Stellantis, are investing $3.6billion to help Stellantis retool its Canadian auto plants – including its facility in Brampton – to install a flexible assembly line capable of producing battery-electric and hybrid vehicles.

This overhaul will diversify the automaker’s capacity to meet growing consumer demand for low-emission vehicles and will help secure the long-term future of the facility in Brampton. Stellantis is an anchor in Brampton’s automotive industry, and significantly impacts the local economy, providing approximately 3,000 manufacturing jobs and many indirect jobs across the province.

Brampton is strategically positioned to support a forward-thinking, advanced manufacturing sector. With a high-quality workforce and award-winning manufacturing, it is the perfect location to be a part of the automotive industry.

Sheridan College: A Pipeline for Manufacturing Talent The City of Brampton has a young, talented workforce ideally positioned to meet the next generation of automotive and mobility technology needs. By working with key post-secondary training institutions through Sheridan College’s Magna Skilled Trade Centre and its leading-edge Centre for Advanced Manufacturing and Design Technology (CAMDT), Brampton’s talent pipeline is second-to-none.

CAMDT exemplifies Sheridan’s leading role as a hub connecting industry, curriculum and applied research. The Centre links companies of all sizes to

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Sheridan’s advanced manufacturing expertise and equipment and allows them to explore these tools with the help of Sheridan faculty and students. It is home to the most sophisticated 3D commercial printers available at any Canadian university or college and actively works to address the challenges of the manufacturing industry while developing graduates with the skills and practical knowledge to make an immediate and positive impact on the workforce.

With its vibrant ecosystem of parts suppliers, including eight facilities under the largest auto parts supplier in North America, Magna International, and its highly skilled, adaptable and diverse workforce, Brampton is strategically positioned to support the needs of the automotive manufacturing sector.

Building a Sustainable Future Right Here in Brampton Up to 90% of vehicles manufactured from Brampton’s operations are exported outside of Canada, primarily to the United States. With major investments at hand, Brampton’s manufacturing facilities are poised to propel the exportation of both hybrid and electric vehicles on a global scale. Brampton’s vision for environmental change goes beyond Canadian borders and continues to support an emission-less future.

Brampton Mayor, Patrick Brown looks fondly toward Brampton’s future, stating, “Brampton has a proud history of automotive excellence anchored by our Stellantis facility, and a large and innovative advanced manufacturing sector. We are thrilled our city will be a part of the global automotive industry shift towards electric vehicles. The future is bright for Brampton, our local workforce, and our automotive industry.”

NORTHWEST TERRITORIES

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NEW & BRITISH COLUMBIA ALBERTA

MANITOBA QUEBEC

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YUKON NORTHWEST TERRITORIES

Ottawa NUNAVUT

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UNITED STATES OF AMERICA NEWFOUNDLAND & LABRADOR

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Brampton Waterloo

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Kingston

London

Toronto Mississauga Niagara Hamilton

Boston New York

Washington Ottawa

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Kingston Brampton Waterloo London

Toronto Mississauga Niagara Hamilton

Boston New York

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ONTARIO LEADs NORTH AMERICAN COMMERCIAL REAL ESTATE FOR LOGISTICS, WAREHOUSES & MANUFACTURING PLANTS Business Parks, Design Build and Options to Acquire Land are all Available in Ontario

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t’s clear that Ontario has a lot to offer in every other category, and real estate is no different. In fact, the province was placed as one of CBRE’s Top 50 North American markets based on elements such as their ability to attract and develop technological and automotive talent, the tech-job concentration, labour pool size, and real estate costs. Being among other North American states and provinces that may have larger economies, this is quite the feat for Ontario. Toronto even placed second in CBRE’s report for economic potential and business friendliness, coming in just behind New York.1 Ontario has plenty of commercial real estate opportunities for interested companies, whether they be located somewhere dense, like Toronto (with a population of over 2.7 million people and more than 630 square kilometres of land in the city alone2), or somewhere a little smaller, like Windsor (with a population of over 340,000 people and approximately 146.9 square kilometres of land3). Despite the rough economic situation over the past year, the commercial real estate industry in Ontario has been faring quite well and will continue to be incredibly strong throughout 2023. This positive growth allows for redevelopment possibilities in order to incorporate other assets. Buildings such

as suburban offices or large retail spaces may be converted into warehouse space in the future, allowing for more industries to create their own spaces in Ontario.

As well, due to the rising costs of shipping necessary materials or parts across the ocean, turning to automotive production in Ontario just makes sense.

Because of all the amenities that Ontario has to boast, including but not limited to available land, comparatively low real estate costs, and a premier talent pool of workers, the province would be a great choice to house any interested international automotive companies. Stellantis, one of the major automotive production companies, has chosen and continues to invest in Ontario, proving that the province is worth keeping an eye on. Stellantis is in the process of creating Canada’s first-ever gigafactory, where electric vehicle batteries will be produced on a large scale.4 More than $5 billion is being invested in this production. https://www.investontario.ca/spotlights/ why-skilled-workers-and-global-companies-are-choosing-ontario-canada 2 https://www.toronto.ca/city-government/data-research-maps/ toronto-at-a-glance/ 3 https://www.citywindsor.ca/residents/planning/Plans-and-CommunityInformation/Windsor---Official-Plan/Documents/1%20Introduction.pdf 4 https://www.investontario.ca/spotlights/lg-energy-solution-stellantisinvest-historic-5b-build-ontario-canadas-first-ever-gigafactory 1

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Automotive Connectivity is Driving the Future of Mobility Ontario Leads in Innovation and Start-ups

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ith technology growing faster than some of us can keep up, connected vehicles have transformed the Canadian auto industry. Unlike Automotive vehicles, connected vehicles’ technology does not control the vehicle’s operation, rather this technology is designed to receive and share the information with drivers. Connected vehicles can share information with other devices of systems such as other vehicles, smart devices, trip planning applications, emergency services, and advanced infrastructure, like traffic and smart signs.

When used safely, driver assistance technologies can make our roads safer for everyone. Vehicles being developed now have driver support features that can support steering, braking and acceleration. Advanced Driver Assistance Systems (ADAS), can help drivers avoid collision or reduce its impact. While ADAS features allow support for drivers and makes our roads a little safer, it is still essential the driver remains alert on the road and continues to implement

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the driving laws established for Canadian roads. ADAS features are constantly improving and evolving, as an owner of a Connected Vehicle, understanding how the advanced driver assistance systems features in your vehicle work is critical to safe driving. Your vehicle owner’s manual will explain the different advanced driver assistance systems features available and how to use them.

Ontario has been preparing for Automated vehicles for years now. According to the Government of Ontario, they have embraced new technologies as part of their plan to improve Ontario’s transportation network and economy with 5 key steps.

1) Starting with updating the legislature. The current rules of the road assume that all vehicles have someone behind the wheel. We may update these laws to help people and businesses adopt connected and automated vehicles and create new laws, if needed, to maintain the safety of our roads.

2) Looking ahead into the future. The long-term transportation plans for the southwest, north and Greater Golden Horseshoe anticipate the arrival of connected and automated vehicles and consider the necessary

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infrastructure to support their roll-out. The plans consider how connected and automated vehicle technologies can help people get around more easily.

3) Improving physical and digital infrastructure, Integrating technology into our infrastructure may help us improve transportation. Ontario’s highways are ready for connected and automated vehicles. Ontario highways feature an intelligent transportation system (ITS) designed to improve safety and operations across the province. Some of the smart features that Canada is currently implementing on the highways are; cameras to spot vehicle incidents and send help to remove anything blocking the lanes, such as a stalled vehicle. There are also sensors to provide fast and accurate information on traffic delays and where they happen, and message signs with updated travel times.

4) Supporting people and the industry. Ontario is a leader in connected and automated vehicle development, testing and deployment, with over 300 companies developing these technologies in the province. Many colleges and universities offer auto-related training as well. To support innovation, we have pilot programs for businesses and academic institutions to develop and test their technologies.

5) Working with partners. Connected and automated vehicles will create unique challenges, which is why we are working together with all levels of

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government and industry to identify the potential impacts of connected and automated vehicle technology. Together, the Province are focused on: a. preparing the workforce for the impact of connected and automated vehicle technologies b. u pdating our infrastructure to support connected and automated vehicle communications c. p rotecting your privacy and consumer rights d. increasing mobility for people facing social exclusion and accessibility barriers Automated vehicles come with so many benefits that will make the roads safer for everyone. Starting with safer roads, Connected and automated vehicle technologies could make driving safer by reducing human error or by informing drivers of obstacles on the road. Efficiency in travel will be another benefit due to Connected and Automated vehicles, with the ability to share road construction, detours and parking information, drivers will be able to avoid traffic and will arrive at their destination promptly. Persons with disabilities and seniors will also benefit from automated and connected vehicles due to their advanced driver assistance systems. Lastly, automated vehicles are an environmentally friendlier alternative as they use clean or alternative fuels, such as electric and hydrogen powertrains, which can help reduce greenhouse gas emissions.

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Steel: the energizing material Our industry-leading steel products and solutions for electric vehicles help car makers to create sustainable solutions by reducing vehicle weight, while increasing safety performance. Our world leading steel products and solutions coupled with our net zero carbon targets make ArcelorMittal a key partner for the global automotive industry.

Smarter steels for people and planet. automotive.arcelormittal.com

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ArcelorMittal’s steel integration and innovation for automakers A

rcelorMittal is a leader in producing the advanced lightweight steels used to make the design-forward, performance-driven and safety-superior vehicles of today and tomorrow. The company’s network of global research and development teams work directly with customers to develop steel products and solutions for next-generation vehicles.

Steel produced by ArcelorMittal Dofasco in Hamilton and ArcelorMittal Tailored Blanks’ innovative laser welding technology for multi-part integration play a key role in the engineering and design of Project Arrow, the first Canadian all-electric, zero-emission vehicle.

The Project Arrow concept vehicle, recently showcased at the Canadian International AutoShow in Toronto, is a project of the Automotive Parts Manufacturers Association in collaboration with more than 50 partners.

Designed, engineered, and built in Canada, the car is an answer to the Canadian government challenge to be at net zero by 2050.

“The advanced vehicles of the future will need a wholistic approach to range, structural integrity and enterprise responsibility,” said Flavio Volpe, President of the Automotive Parts Manufacturers’ Association.

“ArcelorMittal was the perfect partner for Project Arrow to showcase the advanced manufacturing, use case and advantage of the Canadian steel of the future.”

Project Arrow showcases innovations in steel and in laser welded blanks (also called tailored blanks), which allow automakers to reduce the weight of their vehicles while improving safety by combining different steel grades with different coatings and thicknesses into one single part.

“The innovations with laser welded blanks in the APMA concept vehicle are made possible by ArcelorMittal’s range of press hardenable steels (PHS) that include the Usibor ® and Ductibor ® families,” says Ram Iyer, Manager, CoEngineering, Auto Product Applications, ArcelorMittal Global Research and Development.

ArcelorMittal Dofasco began producing Usibor ® press hardenable steel (PHS) in Hamilton in 2022 after a $24-million CAD coating addition at its No.5 Hot-Dipped Galvanizing Line. It is the only producer of this aluminum alloy coated press hardenable steel in Canada.

PHS grades are ultra-high strength and formed at high temperature into complex shapes. Following rapid cooling in the die, the strength of the part increases significantly. They are intended for use in the structural and safety components of vehicles, notably in the safety cage that protects the occupants in all crash events, says Iyer.

“These new grades are enabling OEMs to take the crash and safety performance of their vehicles to even higher levels while reducing material use and addressing burgeoning sustainability targets. Vehicle models that utilize these grades are in production both in North America and globally. ArcelorMittal continues its research and development in steel grades for the automotive industry and is committed to bringing many new products into its PHS family.”

ArcelorMittal Tailored Blanks (AMTB) supported the Project Arrow team in developing a virtual model of the vehicle and co-engineered the Multi-part Integration (MPI) concepts that showcased laser welded blanks using the PHS steels says Gagan Tandon, Vice President, Product Development for ArcelorMittal Tailored Blanks Americas.

“Multi Part Integration concepts are laser welded blanks that consolidate multiple components into a single hot stamped design, which reduces the complexity of the body assembly for manufacturers. As a part of the Body-In-White

Usibor® and Ductibor® Steel Multi-part Integration in the Project Arrow Concept Battery Electric Vehicle

Usibor®2000 Usibor®1500 Ductibor®1000

(BIW) development, more than 60 parts were consolidated into 11 integrated parts for Project Arrow.”

Together, the innovative steel grades applied to multi part integration save 15 per cent of component weight on the BIW and the Multi-part Integration concepts reduce emissions per vehicle during production by 30 per cent due to part consolidation, efficient processes, and a reduced number of operations and logistics.

ArcelorMittal has a global commitment to reduce GHGs by 25 per cent by 2030 and a net zero target for 2050. It’s XCarb™ brand brings together the company’s reduced, low and zero-carbon products and steelmaking activities, as well as wider initiatives and green innovation projects, into a single effort focused on achieving demonstrable progress towards carbon neutral steel. – In Ontario, ArcelorMittal Dofasco has begun offering XCarb™ recycled and renewably produced (RRP) steel to its customers. RRP steel has a minimum of 70 per cent scrap steel content.

Two ArcelorMittal investments in Ontario are also contributing to a lower carbon future.

ArcelorMittal Tailored Blanks has invested $17.4 million in new equipment and modifications to its Woodstock, Ont. facility to produce advanced tailor blanks for door ring applications to address increased production demands in the battery electric vehicle market. Southwestern Ontario Development Fund contributed $1.5 million to the project.

ArcelorMittal Dofasco has embarked on a transformation which will make it the first integrated steel mill in North America, and among the first in the world, to transition off coal for the ironmaking process. The site will move to electric arc furnaces (EAFs) that are fed with direct reduced iron (DRI) produced onsite, which will cut greenhouse gas emissions by approximately 60 per cent, or 3 million tonnes, by 2028.

That is the equivalent of taking 725,000 internal combustion engine cars off the road or planting 138 million trees.

The nearly $2-billion investment is supported by $400 million from the federal government and $500 from the provincial government.

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Climate has vaulted to the forefront of trade priorities: Ontario has an incredible supply chain and capacity to build all sectors of EVs. Canada’s Safe, Secure Supply of Critical Minerals that will go into Batteries is at Manufacturers Fingertips

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attery electric vehicles (EV) are a key component of the measures that nations are implementing to fulfill their commitments to achieve net-zero emissions by 2050. Investors that take advantage of a new battery electric vehicle supply chain will profit more and aid in the fight against global warming. Mining and mineral processing, cathode and anode manufacture, chemical precursors, battery production, electric vehicle manufacturing and parts supply, and battery

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recycling are the five sectors of the EV battery supply chain where Canada is well-positioned to take the lead. Only Canada contains all the essential minerals needed to produce EV batteries in the western hemisphere. According to Sophie Lu, head of metals and mining at BloombergNEF, on global battery supply chain leadership, “Key distinguishing factors are the environmental footprint of industry, the availability of cheap but clean electricity, a technically skilled labor force, and incentives driving battery demand.”

Canada has an abundance of battery minerals which allows their supply chain market an advantage. With approximately 63% of an EV battery’s total cost, Canada’s cathode manufacturing grants a rewarding opportunity to supply high-growth North American and European markets. Canada has some of the

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top ranking R&D projects in the world allowing it to power the next generation of lithium-ion batteries. Canada has become the destination of choice for battery cell manufacturers due to it being the world’s largest ethically sourcing minerals and supply chain inputs. Canada is proving itself to have an environmental, social and governance (ESG) mindset in the eyes of the world. Furthermore, Canada is showcasing their clean, sustainable and affordable energy along with their technological advancements in Smart Supply Chains featuring traceability that offer both economic and ESG advantages.

With over a century of experience in automotive manufacturing and an ecosystem of part suppliers, Canada offers an expedient vehicle supply chain system.

Major companies such as: Ford, GM and Stellantis, are already investing billions to build electric vehicles in Canada. The automotive industry is highly competitive in terms of cost and Canada’s closeness to the significant U.S markets is an unrivaled value. The largest manufacturer of transit buses and motor coaches in North America, New Flyer, and the Volvo Group subsidiary Nova Bus are both significant producers of electric buses in the Canadian market. When it comes to battery recycling, guaranteeing the supply chain remains sustainable is a vital role. Canada, the North American leader in battery recycling technology, is in a

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distinctive position to scale up and offer global markets a sustainable location to recycle batteries and insure a stable source of recycled metals for new batteries.

A Canadian company holds the title for the largest lithium-ion battery recycling facility in North America, positioning Canada to build on such models to maintain and manufacture its battery recycling investment advantages.

According to Invest in Canada, “Part of the Strategic Innovation Fund, the Net Zero Accelerator fund allocates $8 billion over 7 years to expedite decarbonization projects with large emitters, scale-up clean technology and accelerate Canada’s industrial transformation. Additional support for innovative projects across all sectors includes $1 billion, on a cash basis, to support private sector investment in cleantech projects.” Canada represents approximately 1.5 billion people and 63% of the worlds GDP with their 14 free trade agreements with 49 countries around the world. Canada currently hops the 11th position in EV demand but is expecting it to rise to 6th in the world with their tariff-free access to the U.S market for motor vehicles through CUSMA. Over $4.45 billion have been invested in 2020 and 2021 by major auto assemblers to manufacture EV’s in Canada producing over 488,600 jobs in the Canada’s auto industry, including aftermarket and dealership services.

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ONTARIO HAS NEXT GENERATION TALENT Ontario is a North American Leader for Manufacturing Within the Auto Sector – Incentives and Partnerships with Government and the Education System Creates a Future Ready Workforce

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ntario’s automotive workforce is talented like no other. The entire backbone of the whole automotive industry in Ontario is made up of the people. This is thanks to several things that work together simultaneously to make the automotive industry ecosystem one of the greatest.

Having consistently ranked as one of the top five countries with the best education since 2016,1 Canada is an excellent prospect to expand any business internationally. Ontario, specifically, has many excellent and well-known postsecondary institutions for their automotive-focused programs. One source places Centennial College in Toronto at #2 for college automotive programs worldwide, 2 while another has the University of Waterloo in Waterloo, Ontario, at #30 overall.3 With 12 leading universities and 24 colleges that have auto-focused programs, Ontario has a plentiful pool of educated, skilled workers to choose from. According to the Invest Ontario website, there are about 63,500 science, technology, engineering, and mathematics (STEM) graduates every year.4 As well, the University of Waterloo is Silicon Valley’s 2nd-leading source of tech talent after UC Berkeley, and Toronto is actually the top-ranked tech talent market in North America following San Francisco and Seattle.

Additionally, Ontario is beginning a new program, into which they’ve invested $5 million, to provide free training to 500 people interested in an automotive career.5 This program specifically targets those from underrepresented groups in order to provide them with the skills and training they need to further progress into the automotive industry. The province’s premier hopes that this program will be a successful investment, as it could be crucial in combatting any future shortages in such a vital industry.

With access to such great institutions and programs, it’s no wonder that over 100,000 people work within Ontario’s automotive industry, with that number highly likely to grow due to the transition to EV production. On top of those

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numbers, Ontario is home to nearly 300,000 skilled workers within the tech industry, allowing a lot of potential for cutting-edge, brand-new industry innovations, and more than 5,000 cleantech companies open to collaboration.

The average length of a worker’s stay with Ontario companies is about nine years, which leads to reduced training and hiring costs for employers. Lexus and Lincoln, two high-end automotive companies, have chosen Ontario as the home for their production, and it’s no wonder why. The province consistently puts out high-quality products from workers who are dedicated and possess high attention to detail.6 Plenty of research goes on within Ontario’s auto industry, and with projects like EVs and autonomous vehicles becoming a very realistic addition to modern society, it only makes sense for there to be several research programs and facilities located in the province. The largest research centre in Canada is the Canmet MATERIALS Lab in Hamilton, which is dedicated to the fabrication of materials and metals. The Fraunhofer Project Centre (FPC) for Composites Research is another facility in Ontario. The FPC is a joint project between Western University (located in London, Ontario) and the Fraunhofer Institute of Chemical Technology (located in Pfinztal, Germany) and focused on developing, testing, validating, and characterizing new lightweight materials and advanced manufacturing processes at an industrial scale, which will be crucial to improving the performance of EVs and reducing the costs of production.7 https://www.canamgroup.com/blog/why-is-the-education-system-incanada-one-of-the-best-in-the-world#:~:text=According%20to%20the%20 2022%20US,top%205%20countries%20since%202016!

2 https://ischoolconnect.com/blog/ best-automotive-engineering-colleges-in-the-world/ 3 https://edurank.org/engineering/automotive/ 4 https://www.investontario.ca/automotive-technology#talent 5 https://www.durhamradionews.com/archives/157953 6 https://www.investontario.ca/ spotlights/5-reasons-ontario-poised-lead-future-electric-vehicle-production 7 https://www.investontario.ca/ spotlights/5-reasons-ontario-poised-lead-future-electric-vehicle-production 1

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Canada’s fastest growing EV supply chain: Windsor-Essex, Ontario A

s the southern-most region in Ontario, Windsor-Essex is situated at the heart of the richest consumer market in the world, with over 200 million people located within a 13-hour drive. The region is directly linked to the busiest commercial Canada–U.S. border crossing, handling approximately one third of all Canada–United States trade of nearly $1 billion CAD daily. The region’s prime location, quality of life, great economic prospects and highly skilled workforce make it an easy decision when considering an ideal place to start or expand your business.

Known as an automotive manufacturing powerhouse, the region is home to more than 1,000 manufacturers, 450 automation firms, and 350 parts, machine, tool, die and mold companies that are leaders in next-generation vehicle production.

Two OEMs, Ford Motor Company of Canada and Stellantis N.V. (formerly Fiat Chrysler Automobiles) have production plants in Windsor-Essex. In fact, the region is home to Canada’s largest automotive cluster, with a concentration of companies 120 per cent greater than anywhere else in Canada. The region also boasts an automobility cluster more than 50 per cent larger than any other location in Canada.

Building on the region’s rich history in the development and production of the automobile, Windsor-Essex is now leading the next-generation automotive industry as Canada’s primary integrated supply chain for the development and production of connected, autonomous and electric vehicles (EVs).

Windsor-Essex has been successful in attracting billions of dollars in investment over the past few years including the $5 billon CAD joint venture between Stellantis N.V. and LG Energy Solution (LGES) to build the NextStar Energy Inc. electric vehicle battery plant. This is the first large-scale, domestic electric vehicle battery manufacturing facility in Canada. Construction on the 4.5-million square-foot plant is well underway with a targeted completion in the first quarter of 2024. This project has been the catalyst for the creation of a strong battery supply chain across the Windsor-Essex region.

Fast on the heels of the NextStar announcement came the deal to see South Korean manufacturer Dongshin Motech (operating in Canada as DS C&K Inc.) build a $60 million CAD EV supply plant in Windsor, its first in North America. The plant will manufacture highly specialized aluminum casings for

EV batteries and will employ approximately 300 people. Together, these two facilities will employ approximately 3,000 people in the region.

As part of a $3.6 billion CAD investment, Stellantis also announced retooling of the Windsor Assembly Plant to produce EVs and a 100,000-square-foot electric battery lab that will be added to the company’s Automotive Research and Development Centre. The new battery lab will be central to Stellantis’ R&D operations in North America and serve the company’s worldwide needs for technology, process and product development.

Further adding to Windsor-Essex’s growing battery technology cluster is the Flex-Ion Battery and Innovation Centre (a division of Flex-n-Gate). It will be the company’s lead R&D facility for battery design, development and testing.

The company has invested $20 million CAD into the facility and equipment to become a premier battery testing location.

Windsor-Essex is one of seven Ontario Vehicle Innovation Network (OVIN) Regional Technology Development Sites, with a focus on cross-border technologies and cybersecurity. Windsor-Essex is also home to Canada’s largest publicly accessible virtual reality (VR) CAVE as well as the Canadian Automobility Hub. The Invest WindsorEssex VR CAVE serves as a commercialization tool to support connected, autonomous and electric vehicle development through virtual reality and prototyping.

A first for Canada, the Canadian Automobility Hub brings together regional ecosystem partners, including all levels of government, local post-secondary institutions, program service providers and businesses, as well as bi-national private sector partners. It offers a suite of resources and services, including a state-of-the-art ramp-up factory, to enable and support a network of innovative entrepreneurs and businesses interested in advancing the market for electric, zero-emission, as well as connected and automated vehicle technology and infrastructure.

Windsor-Essex, Ont. is a place for growth and opportunity. The region is on track to be the battery capital of Canada and most likely North America.

The current developments and investments in the region’s expanding EV supply chain is a direct indication that businesses and individuals in the automotive and EV industry should set their sites on Windsor-Essex, Ont., Canada.

Visit investwindsoressex.com for more information.

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ONTARIO HAS A CLEAN MANUFACTURING STRATEGY Ontario is Poised to Lead the Clean Manufacturing Revolution which will be Ready to Support Investments in Producing Clean Steel, Electric Vehicles (EV), and the Batteries that Power Them

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ntario vision to have a self-sustaining sector where we are able to evolve energy systems, increase local job opportunities and invite investments while limiting greenhouse gas (GHG) emissions. All of this can be achieved if Ontario is able to bring their low-carbon hydrogen strategy to life in our province.

In order for the hydrogen strategy to be a success, Ontario has 8 concrete and immediate actions which will lead to the increase in the province’s production capacity of low-carbon hydrogen eight-fold. The following are the 8 crucial steps needed to be make in order to ensure the hydrogen strategy to be a success; launching the Niagara Falls hydrogen production pilot, identifying Ontario’s

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hydrogen hub communities, assessing the feasibility of hydrogen opportunities at Bruce Power, developing an interruptible electricity rate, supporting hydrogen storage and grid integration pilots, transitioning industry through the use low-carbon hydrogen, consulting on an Ontario carbon sequestration and storage regulatory framework, supporting ongoing hydrogen research.

Ontario is currently in an excellent position to become a pioneer in the lowcarbon hydrogen sector. The province has many advantages, such as; a clean, reliable and affordable electricity system. According to the Government of Ontario website, Canada has one of the world’s cleanest electricity systems with very low emissions. Furthermore, Ontario has competitive electricity rates for large electricity consumers through various programs that could profit hydrogen producers, especially by using off-peak electricity. Ontario also has an existing storage and pipeline infrastructure that can be used to supply hydrogen and distribute it to homes and businesses. Ontario understands the importance of working with the federal government and all other Canadian provinces and territories to progress commercial development of hydrogen. This hydrogen strategy would require the federal government to extend tangible support and partnerships

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A new wave of vehicles

Ontario has seen massive proposed investments by industry leaders in the EV sector.

$5B $3B

$3B $1.8B

$17B in new auto investments

$1.5B

Including nearly $13B in electric vehicle and EV battery investments

$1.4B

$470M

Source: https://www.ontario.ca/page/driving-prosperity-future-ontarios-automotive-sector

Ontario is committed to action on climate change, including reducing GHG emissions to 30% below 2005 levels by 2030.”

(Government of Ontario)

Since 2018, Ontario has already embarked on a wide range of initiatives that include low-carbon technologies: (Taken from the Gov’t of Ontario Website) • Lowering the carbon footprint of industrial processes such as reducing the use of industrial coal in the steel industry; • Introducing industrial Emissions Performance Standards; • Building zero-emission electric vehicles; • Developing Canada’s first grid-scale small modular reactor and investigating future hydroelectric opportunities in Ontario’s North; • Integrating more electricity storage and distributed electricity generation resources into the provincial electricity grid; • Supporting new transmission infrastructure to connect more businesses to Ontario’s clean grid; • Blending renewable content into gasoline, diesel and natural gas; and • Increasing production of biogas and renewable natural gas for space and water heating, transportation and other applications.

Ontario will be able to meet this target with various technologies and pathways to help them. For pragmatic and profitable reasons, different lowcarbon technologies are better suited for specific treatments in the forthcoming term. In some instances, electrification is the obvious choice; in others, clean fuels will provide the flexibility needed to reduce emissions.

Ontario is determined to enforce their low-carbon hydrogen strategy and make their economy one of the first to evolve energy systems and reduce greenhouse gas emissions. By partnering up with the private sector and supporting their innovations, Ontario can ensure that their clean energy system, environment and economy can continue to thrive for future generations.

with the province including funding and risk-sharing opportunities , clear and efficient regulations that are harmonized across leading jurisdictions and support for innovation.

Ontario has several strategic objectives they need to implement in order to become a leader in the low-carbon hydrogen economy. The government of Ontario was able to break those objectives down into 5 core categories; generate economic development and jobs, reduce greenhouse gas emissions (GHG), promote energy diversity, promote innovation and investment, and finally strengthen collaboration between the private sector, the federal government, municipalities, indigenous communities, academic institutions and all other stakeholders within Ontario.

“

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Powering the path to next-generation mobility Researchers at the McMaster Automotive Resource Centre (MARC) are partnering with industry and government to fuel innovative solutions, develop new technologies and train the high-demand talent required for the sector’s future.

Home to one of the world’s most advanced testing environments, MARC is the go-to place for leaders in the automotive sector – from start-ups to large manufacturers.

Together, through research and innovation, we’re driving Ontario’s economy.

Ali Emadi, engineering professor and Canada Research Chair in Transportation Electrification and Smart Mobility, McMaster University

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McMaster University is partnering with industry leaders to advance vehicle electrification H

amilton is the “Electric City” once again, thanks to the cutting-edge work of a research team at McMaster University that is powering the path to next-generation mobility.

Dr. Ali Emadi’s research group – the Canada Excellence Research Chair (CERC) Laureate Program at McMaster Automotive Resource Centre (MARC) – is one of the world’s leading academic research programs in transportation electrification and smart mobility. It is also one of the largest programs of its kind in North America, with more than 250 graduate and undergraduate students, post-doctoral research fellows, and engineers.

MARC is a 90,000-square-foot purpose-built facility at McMaster Innovation Park in Hamilton where researchers work directly with industry to develop and test new technologies. Home to one of the world’s most advanced testing environments, MARC is the go-to place for leaders in the automotive sector – from start-ups to large manufacturers.

“Our model at MARC is to go big and go deep with industry partnerships.

Our strategic alliances with the sector mean we are embedded with them right from the beginning of design,” said Emadi, who is a professor of electrical and computer engineering and mechanical engineering.

“We also have one of the best testing environments in the world. We can test electric motors, power electronics, battery cells and packs, entire powertrains and entire vehicles.”

Emadi’s group works with companies of all sizes, from Ontario’s large automotive manufacturers such as Stellantis (formerly Fiat Chrysler Automobiles), GM, and Ford, Eaton, and Cubic Transportation Systems to small, medium and start-up enterprises.

PhD and master’s graduates from Emadi’s team are in high demand all around the world.

“If we graduated 400 more of them today, they would all have jobs yesterday.

There is an unbelievable need out there for talent and companies are investing where they know that expertise is centred,” said Emadi.

“Ontario is training engineers at a higher rate than many other jurisdictions in North America and companies are realizing that. With government support, there is a tremendous opportunity to land more automotive investment in Ontario.”

Emadi, whose long list of academic, industry, and investment achievements has established him as one of the leaders in his field, believes Ontario can be at the forefront of production of smart, AI-powered mobility solutions like nextgeneration electric powertrains for automotive, aerospace, industrial, consumer and micro-mobility sectors.

“The province has a massive advantage in intellectual property, expertise, testing, manufacturing capacity, and talent generation in this field. There is a monumental opportunity at hand. MARC is an anchor of all of that.”

Emadi has created four spin-off companies, including two at McMaster University: Menlolab, which is developing seamless, scalable, cloud-based virtual engineering solutions for multiple sectors including advanced manufacturing, smart mobility, and big data; and Enedym, which is developing

Ali Emadi, engineering professor and Canada Research Chair in Transportation Electrification and Smart Mobility at McMaster University.

the next generation of rare-earth metals free electric motors for a range of industries.

More than 15 million electric motors are manufactured worldwide every day, powering everything from household appliances to industrial and agricultural equipment to e-bikes, e-scooters, and electric vehicles of all shapes and sizes.

So while the market is huge and the need to transition away from internal combustion engines is immediate, a long-standing challenge is the cost of producing electric motors that require rare earth metals in permanent magnets.

That can account for 30 to 40 per cent of the cost of the motor.

Enedym’s patented disruptive technologies remove the need for the magnets, substantially reducing the cost, while providing powerful, efficient, and highperformance operation.

The company, which is partially owned by McMaster, holds more than 60 patents or patents pending.

Enedym, which currently employs 50 people, is on a trajectory of rapid growth after attracting international strategic investors and licensing deals in 2021 and 2022.

Other research groups at MARC include the Centre for Automotive Materials and Corrosion (CAMC), the Centre for Mechatronics and Hybrid Technology (CMHT), the McMaster Centre for Software Certification (McSCert), and the McMaster Manufacturing Research Institute (MMRI), which has moved next to MARC to further amplify collaboration.

Additionally, a $10-million investment from FedDev Ontario is supporting an integrated automotive, aerospace, and advanced manufacturing electrification network known as iHub that leverages another $16.8 million from industry partners.

When Emadi was offered a $10-million Canada Excellence Research Chair in Hybrid Powertrain at McMaster in 2011, he says what really sold him was Hamilton’s history as the Electric City. It was one of the first cities on the continent to be electrified by hydro power more than 100 years ago thanks to the electric power generation and transmission technology of Nikola Tesla. That shaped the city’s industrial legacy, including all the powerful innovation of Westinghouse on the very site where MARC stands today.

Says Emadi: “Hamilton is the home of manufacturing and electricity, and we believe electrification can transform Hamilton a second time.”

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CALLING ELECTRONIC VEHICLE MANUFACTURERS: BILLIONS TO ONTARIO AWARDS GRANTS FOR THE EV SECTOR Canadian Government sets Clean Goals: 100% Zero Emissions Car Sales by 2035

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here are plenty of funding opportunities, offered both by the Ontario government and the Canadian government, for industries within the automotive sector. As this is such a rapidly growing industry, the province of Ontario is ensuring that companies are adequately prepared for the mass shift from gas vehicles to EVs and autonomous and connected vehicles.

The production of EVs has garnered interest and support from two levels of government—federal and provincial—proving that this is not just a corporate interest. Both levels of government are planning to support the required production of green infrastructure and innovation to build Ontario’s status as a world leader in this new and growing space. The government of Ontario has increased the support they’re providing to the automotive economy, pledging to invest $10 million toward the auto supply chain. This is part of the Ontario Automotive Modernization Program (OAMP), which falls under the province’s Driving Prosperity strategy in an effort to help small- and medium-sized automotive

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suppliers upgrade their capabilities and give them a better fighting chance to compete on the global market.1 Additionally, in order to face up to the inevitable growing demand of the automotive sector, the province created a new agency, Invest Ontario, to specifically nurture investment and help businesses grow.

According to their website, Invest Ontario will give companies the expertise they need to help their business thrive in the province. Though their help spans all economic sectors in Ontario, they are offering a $400 million initiative to specifically encourage investments in advanced manufacturing sectors, such as in EVs and other related technologies. The province has also put forth $56.4 million to go to the Ontario Vehicles Innovation Network (OVIN) in an effort to expedite the development of electric driving in Ontario. This further supports the research and production of autonomous vehicles. The government also supports the Net Zero Accelerator Fund, which is a federal program that costs $8 billion and focuses on expediting clean energy projects, including battery cell facilities.

Ontario offers further funding opportunities to companies dedicated to green/clean energy practices. With the transition to EVs, the province is committed to being as environmentally friendly as possible. Its energy mix is 94%

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emissions-free. 2 In order to accomplish this, Ontario has created and implemented Clean Energy Credits (CEC). This tracks the trade of credits from non-emitting facilities for electricity generated and consumed in Ontario.3 Their electricity can be generated from non-emitting sources like solar, wind, bioenergy, hydroelectric, and nuclear power. With CEC, Ontario has been positioned as a top location for investors who are seeking a green energy footprint. As another motivator to bring companies to Ontario, the province has a Compulsive Electricity Plan (CEP) to address the costs of electricity. This plan will save medium-sized and large industrial and commercial employers an average of 15%-17% on their electricity bills.4 Because Ontario does pay for a portion of non-hydro renewable energy contract costs, the electricity rates are lower, which provides more stable prices for Ontario’s electricity supply.

In a new announcement, Canada has stated that EVs made in the country will qualify for U.S. consumer tax credits under a new U.S. bill. Previously, the bill had stated that such tax credits would only apply to U.S.-made vehicles. There is a $4,000 tax credit for any purchase of used electric vehicles and a $7,500 credit for the purchase of a new EV. Some stricter requirements have been imposed for EVs to qualify for the full tax credit incentive; according to the Invest Ontario website, a portion of the critical materials in the EV’s battery must be extracted or processed in any country with which the United States has a free trade agreement.5 An EV can also qualify if the materials within the battery are produced at any North American recycling operation.

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https://www.investontario.ca/ spotlights/5-reasons-ontario-poised-lead-future-electric-vehicle-production 2 https://www.investontario.ca/spotlights/lg-energy-solution-stellantisinvest-historic-5b-build-ontario-canadas-first-ever-gigafactory 3 https://ero.ontario.ca/notice/019-5816 4 https://www.investontario.ca/spotlights/ honda-moves-toward-electrification-14b-investment-ontario-canada 5 https://www.investontario.ca/spotlights/ canadian-built-electric-vehicles-be-eligible-us-tax-credits 1

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ONTARIO: THE BATTERY & EV POWERHOUSE Ontario Positions Itself as a World Leader in Rechargeable Power Sources

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he production of electric vehicles (EVs) has taken over worldwide manufacturing, and no one is doing it better than Ontario.

An EV is a vehicle that is partially or fully powered by electricity and requires a plug-in to recharge. With the rising cost of gas and the attempt to make more environmentally conscious decisions, EVs are steadily rising in popularity. This causes EVs to be in such high demand, and Ontario is ready to provide.

Having been building cars for over 100 years, as well as being the second largest vehicle-producing region in all of North America, Ontario is very aware of how to get cars into their consumers’ hands as quickly and efficiently as possible.

Ontario is incredibly capable of producing EVs thanks to their supply chain and the number of natural supplies Ontario has that are crucial to producing EV batteries. (Both topics will be covered in subsequent chapters.) Many leaders in the automotive industry currently reside in Ontario and have put forward huge proposed investments, including $5 billion from Stellantis and LG and $1.8 billion from Ford. In addition to the nearly $16 billion total that has come

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from automotive investments alone, approximately $12.5 billion of that number went to electric vehicle and EV battery investments. Ontario is ready and prepared for EVs. Ontario is home to anything and everything that industry leaders and innovators could ever need: there is a high-quality workforce, with more and more skilled workers joining every year thanks to the several schools that specialize in automotive-focused programs; there is access to the North American market, which is consistently one of the top performing regions worldwide; and there is a culture of high-quality, award-winning manufacturing, with Canada producing over 1.3 million cars in the year of 2020 and establishing itself as the 11th best vehicle producer worldwide. Some of the best-selling cars globally are produced in Canada, with Honda having a plant in Alliston, Ontario to produce their Civic and CR-V models there, and Toyota producing their well-loved RAV4 and RAV4 Hybrid models in Woodstock, Ontario.

Overall, this quote from the Invest Ontario website puts it best: Ontario is a crucial jurisdiction in the global production and development of electric vehicles (EVs) and it will continue to build the innovative technologies that will define the future state of automotive design in electric vehicles and beyond.

The Highway to Automotive Investment Success Leads to Middlesex County Middlesex is a rich rural-urban landscape in the heart of southern Ontario, and boasts all the must haves for automotive businesses looking to expand or upgrade their facilities: pPrime location pAffordable land prices pEducated workforce pMulti-level government support pDesirable quality of life

Given the convergence of automotive and technological expertise, coupled with the County’s receptive investment climate, it’s no wonder that savvy corporations are building and benefiting here. Some that already call Middlesex home include: • Cooper Standard • Armo-Tool • PentaCast • Meridian Lightweight

• Variform And, our newest, • Goss Global

Ease of shipping is part of what’s driving prosperity here: Reliable transportation connections keep products rolling down the 401 and 402 highways to destinations across the globe. U.S. deliveries from Middlesex have three border crossing options (Detroit/Windsor, Port Huron/ Sarnia and Buffalo/Fort Erie) all within a two-hour drive.

Both Canadian National and Canadian Pacific Railways crisscross the county.

Central to the County, London International Airport is extremely convenient for cargo and people.

Port access to shipping channels in the Great Lakes is only sixty minutes away.

Auto Select: Middlesex County The Province of Ontario is focussed on being a world-wide auto sector leader, and Middlesex County has an economic development plan perfectly suited to manufacturers looking to park their business on a plot of industrial land – sites where the upfront work of gathering property information; mapping; and completing the environmental, heritage, archaeological and species assessments have already been done, thus reducing risk in advance of construction.

Middlesex is also well situated with easy access to large Toyota and General Motors assembly plants only 60 minutes east along the highway.

Smart Help Available Middlesex has a rapidly growing population of nearly 80,000 residents. Plus, our inclusion in the Greater London Region (pop. 505,780) gives manufacturers access to Canada’s 11th largest market, and two large educators: Western University and Fanshawe College.

Both institutions rank as leaders in research and public/ private partnerships.

It’s a Wonderful Life Short commutes, traffic that moves, fresh air, safe spaces, many active living options, and access to worldclass healthcare are all just part of the Middlesex appeal.

There’s also the county’s rich offering of arts, entertainment and culture that create an amazing quality of life for families of all types.

Enjoy the ride with us in Middlesex County.

We appreciate your business investinmiddlesex.ca

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ONTARIO’S AUTOMOTIVE INDUSTRY BY THE NUMBERS

700+

PARTS SUPPLIERS

5

OF THE WORLD’S TOP GLOBAL ORIGINAL EQUIPMENT MANUFACTURERS

80%

OF PRODUCTION VEHICLES AND PARTS EXPORTED TO INTERNATIONAL MARKETS

4

#1

RATED AUTO PLANT IN THE WORLD (J.D. POWER, 2019)

500

TOOL, DIE AND MOULD MAKERS

300+

ONTARIO-BASED PARTS COMPANIES WORK COMPANIES IN THE TOP 100 IN CONNECTED AND GLOBAL SUPPLIERS AUTONOMOUS DEVELOPMENT AND SMART MOBILITY

From https://www.investontario.ca/automotive#intro

Ontario’s Supply Chain Investment Boosts Global Competitiveness in Auto Parts Industry Ontario Suppliers will Become Better, Stronger and Faster with New Incentives Investing in Technology

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n December of 2021, Ontario expanded their support for the innovative projects in the Auto Industry in order to boost supply chain competitiveness. By investing an additional $12 million in auto part companies through the growing phases of Ontario Automotive Modernization Program (O-AMP),Ontario is able to boost the competitiveness and position of Ontario as a North American hub for building the car suitable for the future.

Since the funding was first awarded in 2019 following the launch of the Ontario Automotive Modernization Program, it has leveraged over $22.2 million in industry investments. In 2021, the O-AMP program was aiding small and medium-sized automotive parts suppliers with the goal of making Ontario a world-leader in the future of auto manufacturing. According to News Ontario “The program will help make suppliers better, stronger and faster by investing in technology adoption and/or training in lean manufacturing. More than 100

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projects are either underway or completed under the program, and they are expected to create about 613 new jobs.”

In April of 2022, The government of Ontario added another $5.5 million in support for O-AMP, which is the focal point in Phase 2 of Ontario’s 10-year vision. According to News Ontario, Phase 2 of the plan demonstrates the government’s commitment to transform the province’s automotive supply chain to build the cars of the future, including the production of hybrid and battery electric vehicles, EV battery and component production, and increasing exports of Ontario-made auto parts and innovations. The success of phase 2 is essential in making Ontario one of the most vertically integrated automotive jurisdictions in the evolving North American EV market.

According to the news release; The Ontario Government Continues to Invest in the Province’s Auto Parts Supply Chain, The $22 million O-AMP program will help make suppliers stronger, faster and more resilient by investing in technology adoption and/or training in Lean manufacturing. Nearly 150 projects are either underway or completed under the program, and they are expected to create more than 820 jobs. Funding awarded since the launch of O-AMP in

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2019 has leveraged more than $36.5 million in industry investments. The current round of O-AMP projects will see investments of nearly $5.52 million from 44 companies One of the companies benefiting from the O-AMP relaunch is Poly-Nova Technologies Corporation, a Guelph-based custom manufacturer of specialized sealing and rubber components for automotive, industrial, life sciences and energy applications. With their expected $142,500 in O-AMP funding, the company will be able to invest more than $326,000 in new manufacturing technology to expand product offerings and increase competitiveness. This project is expected to create 15 more jobs.

Cornwall-based company, Morbern Inc. specializes in coated fabrics and vinyl materials used in sectors including automotive healthcare and hospitality.

With $142,500 in O-AMP funding, Morbern Inc. will be able to invest more than $429,000 in advanced Industry 4.0 technologies that will monitor for production defects and deploy data analytics to enhance quality control.

Nominal Machine Tool, Windsor-based, has a full-service Tool & Die/ Machining Division, a Stamping & Assemblies Division, as well as an Automation, Robotics & Integration Division providing full 3D designs, prototyping, manufacturing, and refurbishment services for the automotive, EV and advanced manufacturing sectors. With $142,500 in O-AMP funding, the company will be able to invest more than $307,000 in new production technologies

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while building upon in-house Lean manufacturing expertise to improve efficiency and competitiveness. This project is predicted to create 7 more jobs.

“Technology is migrating from the car to the factory. It is no longer enough to simply make the most advanced goods. Ontario companies must make them in the most advanced factories in the world to compete,” said Flavio Volpe, President of the Auto Parts Manufacturers Association. “The O-AMP program uniquely targets that challenge, and we are proud to partner with the province to deliver it.”

News Ontario states in their press release, “Over the past 18 months, Ontario has attracted more than $12 billion in game-changing investments by Ford, ArcelorMittal Dofasco, Honda, GM and a joint venture between LG Energy Solution and automaker Stellantis to build the province’s first large-scale electric vehicle battery manufacturing plant in Windsor. More than $5 billion of these investments are in transformative hybrid and electric vehicle production at Ontario assembly plants.”

Ontario has committed $56.4 million over the next four years through the Ontario Vehicle Innovation Network, to support innovation and transformation in our auto tech system. These investments, particularly through the O-AMP program, will help ensure Ontario’s position as a competitive player in the emerging North American auto market.

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RESEARCH & DEVELOPMENT WITH LEADING ENGINEERING CREATES VALUE IN ONTARIO’S AUTO SECTOR Innovation, Transformation and Evolution makes Ontario a World-class Automotive Hub for Global Customers

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ntario is home to a completely unique environment of world-leading vehicle assemblers, components producers and research centers which have been assembling the desires of worldwide clients for over 100 years.

Ontario’s expertise in all things automotive, spans from proof-of-concept prototyping to production line automation systems to global logistics tracking software. Connected-car technologies, driverless vehicles, and electric-hybrid powertrain systems are all examples of the breakthrough technologies Ontario has developed in their research labs. You can connect to Ontario’s innovation ecosystem to grow your business or just to buy high-quality components at reasonable prices.

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Read Kadri, Head of Ontario Vehicle Innovation Network states, “As battery technology takes hold of the sector, the race is on to develop, manufacture and supply increasingly more powerful and longer-lasting batteries. Northern Ontario is rich with the resources- some say higher grade than anywhere else in the world- that will fuel this battery revolution.”

Taking a look at Ontario’s Automotive Industry by the numbers, in terms of volume; Ontario is the 2nd largest vehicle producing jurisdiction in North America with 80% of production vehicles and parts exported to international markets. Ontario has over 300 companies working in connected and autonomous development and smart mobility, with over 700 parts suppliers; Ontario itself has 4 Ontario-based parts companies in the top 100 global suppliers.

Companies such as; Denso, Ford, General Motors, Honda, Stellantis, Toyota and many more are a part of Ontario’s automotive development. All these industry leaders have a combined auto investment of $16 billion, including 12.5 billion in electric vehicle and EV battery investments.

[Story continues on page 26]

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Ontario has commited

Ontario is providing an additional

$56.4M

$39.6M

over the next four years to support innovation and transformation in our auto tech system.

over 3 years to expand the Specialist High Skill Major program to help students gain job-ready skills in the skilled trades.

[Story continued from page 24] Invest Ontario has listed Ontario’s top 5 state-of-the-art, innovative and thriving research and development labs. The Automotive Centre of Excellence at the University of Ontario Institute of Technology is one of largest and most sophisticated climatic wind tunnels on the planet, where test winds reach speeds of 300 kilometers per hour, temperatures range from -40 to +60 degrees Celsius, and relative humidity ranges from 5-95%. ACE is able to re-create any environment or weather condition in the world in order to test their automotive products and conduct research to improve performance. CanmetMATERIALS, is another research and development, currently holding the title for the largest research center in Canada dedicated to fabricating, processing and evaluating metals and materials. With their technical staff residing in Hamilton and Calgary, they are able to research and develop materials solutions for Canadian industry in the energy, transportation and metal-manufacturing divisions. The Transportation sector, the energy sector and the manufacturing sector are

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CammerMATERIALS three major industrial sectors within Canada that are the biggest users of natural resources. Western University and the Fraunhofer Institute of Chemical Technology (ICT) in Germany, have come together to create The Fraunhofer Project Centre of Composites Research (FPC). The FPC at Western, tests, validates and characterizes new lightweight materials and advanced manufacturing processes at an industrial scale. FIP- composites at Western are able to proactively address the needs of their industry partners by combining Fraunhofer’s latest global technologies and Western’s strengths.

The Waterloo Centre for Intelligent Antenna and Radio Systems (CIARS), is an excellent electromagnetic device and communication/ sensing system development/ characterization facility at the University of Waterloo. CIARS provides researchers with five interconnected indoor labs, an outdoor lab and a highly advanced computational facility dedicated to electromagnetic devices and communication and sensing system development and characterization.

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Automotive sector primed for electrifying success in Vaughan A

s the automotive industry experiences an ongoing technological evolution, the well-established automotive sector in Vaughan is keeping pace with the continued growth and expansion of next-generation production.

The automotive and electric vehicle (EV) sector employs more than 10,000 people in Vaughan at tier-one suppliers, such as Magna International, Martinrea, Multimatic, Litens Automotive, International Automotive Components (IAC) Group and Woodbridge Foam Corporation, and numerous tier-two and tierthree suppliers. These companies produce a wide range of automotive products, including driveline systems, fluid pressure and controls, hinges, brakes, seats, transmissions and more.

These major players are now being joined by emerging EV leaders like Tesla Motors, Rivian Automotive, and Lucid Motors as part of Vaughan’s emerging business-to-consumer EV cluster. The city is tracking towards a transformational business-to-consumer EV cluster near the intersection of Highways 400 and 407.

The broader York Region contains Canada’s largest independent automotive parts and electronics manufacturing cluster. This activity adds up to 250 companies and approximately 15,000 workers who are directly employed by automotive-related companies in the area.

Automotive manufacturing constitutes the largest block of manufacturing activity in York Region, contributing $4.6 billion to the local GDP. Companies like Martinrea and Woodbridge are supplying parts to Project Arrow, the first all-Canadian electric vehicle showcased at the 2023 Consumer Electronic Show in Las Vegas, Nevada.

“The major investments and anticipated expansions in Vaughan are proof of industry confidence in Vaughan as a location of choice for next-generation automotive retail and manufacturing,” said Vaughan Mayor, Steven Del Duca.

“We’re pleased to welcome new investment in this growing and essential part of our local economy.” Vaughan will be joining the Ontario Automotive Mayors’

Caucus – a working group of elected officials and stakeholders committed to strengthening Ontario’s automotive sector.

Growth is not strictly coming from outside, as companies already in Vaughan are also revving up production. South Korea-based Hanon Systems bought a location in Vaughan in 2018 and is now in the midst of a $130-million expansion to build variable-speed displacement electric compressor pumps for electric vehicles in Ontario. It’s expected this expansion will add another 300 automotive jobs in Vaughan.

This growth is made possible by a number of key assets within Vaughan and the surrounding area. York Region is the fastest-growing municipality in Ontario, attracting tens of thousands of new residents annually – three-quarters of whom have university educations. The area’s close proximity to Toronto and strong transportation links – by land or sky – make it easy to conduct business and fill available positions.

When it comes time to expand your business in Vaughan, the city has one of the largest supplies of vacant employment lands in the Greater Toronto Area (GTA), including the Vaughan Enterprise Zone – an employment hub in west Vaughan suitable for head offices, national logistics and distribution centres, and manufacturing operations.

To support the continued success of the sector, Vaughan Economic Development is prioritizing the automotive and EV sector by providing networking and learning opportunities, tailored economic development services, and by promoting Vaughan as a destination of choice at upcoming automotive conferences and tradeshows.

“Vaughan is a world-class city with innovative and transformational projects and opportunities, and that includes our automotive sector,” added Mayor Del Duca.

“We look forward to continuing to grow this important sector to the benefit of businesses, residents and the city as a whole.”

More information on Vaughan’s automotive sector is available at vaughanbusiness.ca

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ONTARIO IS LEADING THE EV BATTERY PRODUCTION CHARGE Ontario has it all: Vehicle Assemblers, Part Manufacturers, Tool-Die & Mould Makers and Minerals

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s if Ontario needed yet another reason why it is more than prepared to take on the rapid development of electric vehicles (EVs)—the province is chock-full of the materials required to create EV batteries.

In 2019 alone, Ontario’s mining economy totaled more than $10 billion worth of materials, which made up almost 25% of Canada’s total mineral production.1 Some of the top naturally occurring minerals in Ontario are graphite, lithium, nickel, and cobalt; all of these are crucial materials that go into the production of EV batteries. Northern Ontario specifically is doing well in producing minerals: Cobalt, Ontario has North America’s only permitted cobalt refinery, and the city of Greater Sudbury has the world’s second-largest nickel sulphide deposit site. With Ontario to depend on, automotive companies would no longer need to rely on transporting raw materials to places such as Japan, China, and South Korea. 2 The previously-mentioned countries have excellent manufacturing capacities for batteries but lack the large mineral deposits from which the required raw materials come. Ontario has both. In addition to this, The World Bank has predicted that there will be a 500% increase in mineral production as electricity grids and vehicles across the world shift to sustainable energy.3 This means an increased demand for materials to go toward battery production, and Ontario is more than ready to take on the task.

Ontario’s plentiful minerals are hardly a secret, and this is quickly making itself known as attention from international investors occurs more and more frequently. Australia’s Broken Hill Proprietary (BHP) Group Limited, the largest mining company in the world,4 has purchased office space in Toronto as they prepare to move their exploration headquarters for nickel and copper to Ontario.

With such a large company showing interest in investing in the province, this will, no doubt, catch greater international attention and lead to more companies taking advantage of Ontario’s prosperous mining opportunities.

With five original equipment manufacturers (OEMs) located in Ontario, the province has already proven itself as a reliable hub for the automotive industry.

Because of this, the OEMs will continue to invest in Ontario. Ford, General Motors (GM), and Stellantis (formerly known as Fiat Chrysler Automobiles) have all announced their plans to build and produce EVs for the first time in Canada.5 Stellantis will complete a full makeover of their assembly plant in

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Windsor, Ontario in order to prepare for the manufacturing of EVs, GM is investing almost $1 billion to move the production of their EV model to their plant in Ontario, and Ford has partnered with both the Ontario and Canadian government to announce their $1.8 billion to re-model the plant in Oakville to begin production of five new EV models. 6 These productions are slated to begin in 2024-2025.

Ontario’s commitment to an environmentally-friendly and ethical supply chain is something the province prides itself on. Not only is the government setting aside large amounts of funding to invest in the electronic automotive industry, but they also have strict, ethical guidelines that run their supply chain and help the province focus on fighting climate change and exuding clean energy.

Crucial labour laws exist to ensure that large companies needn’t worry about fallouts that may occur from potential human rights violations. Ontario prioritizes clean energy, which can offer significant opportunities for both environmental impact and economic security. Due to this, Invest Ontario states on their website that the province continues to be strengthened by a wide range of other environmental associations and initiatives that showcase the province’s commitment and credibility to lead in the EV space. In all of Canada, Ontario holds the largest cleantech cluster, with more than 5,000 companies located in the province representing their commitment to cleantech. Additionally, Ontario boasts 94% emissions-free electricity, which aids companies in meeting their sustainability goals. The province is also home to the world’s first all-electric, battery-powered, underground mine, which completely eliminates any greenhouse gas emissions associated with moving materials.

https://www.investontario.ca/ spotlights/5-reasons-ontario-poised-lead-future-electric-vehicle-production 2 https://www.investcanada.ca/blog/ ontario-smart-choice-electric-vehicle-and-battery-manufacturing 3 https://www.investontario.ca/ spotlights/5-reasons-ontario-poised-lead-future-electric-vehicle-production 4 https://www.statista.com/statistics/272706/ top-10-mining-companies-worldwide-based-on-market-value/ 5 https://www.investcanada.ca/blog/ ontario-smart-choice-electric-vehicle-and-battery-manufacturing 6 https://www.investontario.ca/ spotlights/5-reasons-ontario-poised-lead-future-electric-vehicle-production 1

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Project Arrow Photo Courtesy Ontario Tech University/APMA

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The Engineering Team for Project Arrow at Ontario Tech University

All Roads Lead to Durham Region

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here are two important facts to take away from this article: Durham Region’s businesses have more than 100 years of experience in building mobility solutions and Durham Region is the Clean Energy Capital of Canada.

In thinking of these two facts and what the next ten years will look like for the automotive industry, it becomes clear that Durham Region is at the centre of the future of electric vehicle innovation.

These facts aren’t particularly new; but they were recently brought to the forefront at the Consumer Electronics Show (CES) in Las Vegas where Project Arrow made its debut. A demonstration of Ontario-made innovation and Canadian ingenuity, Project Arrow is the Made-in-Canada electric, connected vehicle of the future.

Canada’s first zero emissions concept vehicle was launched by the Automotive Parts Manufacturers’ Association (APMA). Over the last three years, the project received over $8 million of funding from several government bodies, including $5 million from the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) and $1.8 million from the Ontario Vehicle Innovation Network (OVIN). Over the course of the project, 58 Canadian industry partners came together to design and build a revolutionary prototype vehicle.

Ontario Tech University was named the lead academic institution for Phase 2 of the project. The team at Ontario Tech were responsible for engineering specifications and aerodynamic testing, as well as converting the designs into a final product, building Project Arrow at the Automotive Centre of Excellence (ACE), a core research facility on the campus.

Ontario Tech University attracts the brightest research and academic minds in areas including additive manufacturing, automotive engineering, aerodynamics, electrification, energy storage, battery chemistry and cybersecurity. The university was chosen as the build partner due to its global reputation for excellence in energy, automotive, smart mobility and engineering research expertise.

The Ontario Tech Project Arrow team progressed the project from initial supplier meetings all the way to part design, fabrication, and full build. Whereas today’s cars are typically built on assembly lines, every design and fabrication detail of the Arrow, from the decision on type and placement for every bolt, to the full installation and build, was completed on campus by a team of experts and

future talent from the university’s engineering programs. The team collaborated with the APMA’s many partners, including industry leaders, start-ups and large Tier-1 suppliers across Canada to contribute and collaborate on Project Arrow.

This project leaves a lasting legacy at the institution, building upon the University’s exemplary track record with industry partners for world-class research and testing and automotive prototype building capacity. These factors are in addition to the ACE Climatic Aerodynamic Wind Tunnel’s unique capabilities for concept development, including the capacity to simulate extreme cold and powerful windstorms.

An Intersection of Innovation “We have a more than 100-year history in automotive innovation, and we’re the Clean Energy Capital of Canada,” reiterates Dan Ruby, manager of business development and investment at Invest Durham, continuing “we sit at the intersection of energy and automotive. If you think of two circles, each representing one industry, the overlap of these—well, that’s the electric vehicle.”

The talent pool in Durham is built upon years of industry strength in energy and automotive innovation, plus the graduates from the only accredited Nuclear Engineering and Automotive Engineering programs in Canada (both at Ontario Tech University). The intersection of these industries and their talent sets up Durham for the years ahead as the way we travel transforms.

Project Arrow is now headed on a two-year publicity tour, and the roads it travels will all lead back to Durham Region. Those just hearing about Durham Region and its potential through Project Arrow should be motivated to act quickly and invest in Durham Region, placing themselves along industry giants like General Motors, Volkswagen, Audi, Lear Systems, as well as innovative start-ups leading in AI and robotics such as Axcessiom Technologies and Korechi Innovations.

Dan Ruby notes Durham Region is excited to grow. “Project Arrow is a business card for Durham’s innovation community. Be sure to get in touch.”

Learn more: InvestDurham.ca

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Volkswagen drives the EV revolution with new battery facility V

olkswagen, Europe’s largest automaker, announced plans to establish an electric vehicle (EV) battery manufacturing facility in St. Thomas, Ontario, Canada. The facility will be managed by the automaker’s PowerCo subsidiary and is expected to create more than 800 jobs in the region.

The plant will produce lithium-ion batteries for Volkswagen’s all-electric vehicles, and will be the first of its kind in Canada. The battery cells used in the facility will be supplied by Northvolt, a Swedish battery manufacturer.

The plant is part of the automaker’s larger goal to produce 22 million EVs globally by 2028. This plan also includes opening six other EV production sites around the world by 2025. Volkswagen hopes that these facilities will help it become a leader in EV technology and manufacturing.

In addition to creating jobs and helping Volkswagen achieve its goals, the new St. Thomas facility also offers environmental benefits as well. By producing electric vehicles locally, Volkswagen can decrease emissions associated with transporting components from overseas locations. Additionally, producing energy-efficient vehicles can further help reduce global emissions.

leading to continued profitability for Ontario businesses with relationships with Volkswagen Group. Ontario’s vibrant economy has made it an ideal place for success in the global automobile sector, and the Volkswagen Group continues to invest heavily in Ontario based companies so as to further build the province’s reputation for excellence in the automotive sector.

Ontario has established itself as a major hub for the automotive industry in North America. In 2020, over C$17 billion in investments by global automakers and suppliers of electric vehicle batteries and materials. Ontario is one of the few places on the continent where five major automakers have assembly plants – Honda, Toyota, Ford, General Motors and Stellantis. This level of investment into Ontario’s automotive industry illustrates its tremendous potential in this sector and indicates that Ontario is fast becoming a destination of choice for automotive innovation.

Incredible Career Opportunities in the Auto-Sector Across Ontario

Automotive experts hail the new Volkswagen plant in St. Thomas for its potential to create jobs and further advance Windsor-Essex as an EV hub. It would make the region even more attractive to supply chain manufacturers with two EV battery plants located within a two-hour drive. The Volkswagen investment in St. Thomas further reinforces this region of Ontario’s reputation as an automotive hub, which already looks set to experience substantial growth when Stellantis opens its EV battery plant and employs around 2,500 people in 2024.

With an incredibly business-friendly climate and continues to attract European investors. Belgium’s Umicore recently invested in Ontario’s battery supply chain, highlighting Europe’s confidence in Ontario as a top destination for innovation and development in clean technology and automotive production.

Ontario is poised to be a leader in green energy and transportation, providing investors with vast opportunity while aiming to reduce its own emissions impact. Ontario will continue to grow its strong relationships with foreign investment, boosting the economy while bringing further sustainability initiatives and technological advancements to the region.

The construction of the facility is set to begin in 2023. The plant is expected to become a major employer in St. Thomas, providing much-needed jobs for the community. It also signals a new era of electric vehicle technology in Canada and around the world.

The Volkswagen Group is one of the world’s most prestigious automakers, and Ontario has its fingers firmly on the pulse. With US$295.8 billion (C$406 billion) in global revenue for 2022, it manages 10 successful companies that are making a major contribution to the automotive industry both locally and globally.

Ontario plays an important role in this success story, with its innovative approach to technology and design combined with highly skilled labor

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Regional Success – Windsor Essex

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The car of the future is Connected, Autonomous, Secured & Electric

Electric Vehicle Light weighting and Crash Safety

Secure and Safe, Connected and Autonomous Eco-Mobility

Electric Mobility, Society and Climate Policy

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Energy Sources and Integration Thermal Management of EV Technologies

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The University of Windsor is home to some of the most innovative automotive research in Canada.

The Automotive Industry is being disrupted by Connected, Autonomous, Secure/Shared and Electric [CASE] technologies. The University of Windsor is poised to lead the field with world-class researchers with a wide variety of expertise including electric vehicles, motors, batteries, 5G and the Internet of Vehicles, computer vision systems, smart sensors, automation, cybersecurity, light weighting, safety, policy and more.

Industry looking to improve their capability and capacity to compete in a global marketplace can find support and expertise at UWindsor, with access to talent, facilities, infrastructure, training, and connections in the automation sector.

University of Windsor 401 Sunset Ave Windsor, ON (519) 253-3000

R&D investments supporting collaborative research with UWindsor can qualify for additional funding opportunities. Both cash and in-kind R&D investments supporting collaborative research with UWindsor can be leveraged to access additional funding opportunities, including federal and provincial research funding programs.

We are committed to building bridges between industry, research, and education to transform ideas into products, competitive advantages, and a deeper understanding of our world.

UWindsor a leader in automotive research and development, we invite you to come and work with us.

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