Taiwan firm cancels $1 billion battery plant plan, raising concerns over federal support

In late 2023, Taiwan Cement Corp. decided to shelve plans for a $1 billion lithium-ion battery cell production facility in Maple Ridge, British Columbia. This decision came after the company received significant support from the Canadian government, with a total of $284.5 million promised by federal and provincial authorities. The significant investment was touted to boost local employment, as the expansion was expected to create 350 new jobs while safeguarding another 100 existing positions at the site. Despite the excitement surrounding the initial announcement, the company’s chairman, Nelson Chang, cited challenges in achieving operational efficiency at their Taiwanese plant as the primary reason for halting the Canadian project. This move aligns with a broader trend where several battery manufacturers in North America are pausing or ceasing similar initiatives, reflecting global uncertainties and a re-evaluation of corporate strategies in the battery production sector. Although specific plans for the Maple Ridge facility are on hold, the B.C. government maintains that operational aspects related to research and development will continue at the existing E-One Moli facility, which has been in operation since 1990. Meanwhile, no funds from the federal government earmarked for the construction of the new plant had been disbursed prior to the halt, according to statements from Innovation Minister François-Philippe Champagne's office. The situation highlights the complexities of the lithium battery supply chain and the importance of local production in an increasingly competitive market. As companies strive for efficiencies and navigate economic pressures, they may reconsider international investments, leading to potential job losses and reduced economic growth in regions once seen as key sites for new technology manufacturing.