The investment will go towards building three new plants
Government of Canada invests in Hanon Systems to strengthen Canada’s EV manufacturing sector
News release
Project will see the construction of the first electric compressor plant in Canada
August 6, 2026 – Vaughan, Ontario
As the world shifts to electric vehicles (EV) and cutting-edge technologies, investments are needed so Canada can become a global EV supply chain leader. Supporting the Canadian automotive industry’s transition to electrification will create high-quality jobs, promote economic growth and enable a shift toward a net-zero economy.
Today, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, announced a $10 million investment, through the Strategic Response Fund, in Hanon Systems to support the construction of a manufacturing plant for vapour-injected electric compressors for electric and hybrid vehicles, as well as a product development centre, in Vaughan, Ontario. The project, with total costs of $198.75 million, will enable Hanon Systems to expand its North American manufacturing footprint, and the plant is expected to produce up to 1.5 million e-compressors per year by 2034. This project will also bring significant economic benefits to Canada and the province of Ontario, including by creating around 300 jobs in Vaughan.
The Government of Canada is delivering results through its automotive strategy. The federal investment in this project reflects the government’s commitment to not only supporting and protecting the Canadian automotive industry but also positioning Canada to become a global leader in the EV industry, which are key objectives of the automotive strategy.
By investing in the Canadian automotive industry, the government is sending a clear message: We are committed to a cleaner, more resilient future, and we will take bold action to ensure Canada thrives in a low-carbon world.
Quotes
“Today’s announcement highlights the importance of the Canadian automotive industry for the growth of our economy. By investing in projects such as Hanon Systems, we are securing Canada’s future in the global zero-emission vehicle ecosystem. Hanon Systems’ groundbreaking facility will drive innovation in EV parts manufacturing, create good jobs in Ontario and help our country become a leader in the global EV supply chain. It’s a win for the economy, the environment and the Canadian workforce.”
– The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions
“Hanon Systems is committed to supporting the transition to electrified mobility through continued investment in advanced technologies and local capabilities. We appreciate the Government of Canada’s partnership and look forward to contributing to a stronger and more competitive EV supply chain in Canada.”
– Soo-Il Lee, Vice Chairman and Chief Executive Officer of Hanon Systems
Quick facts
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Founded in 1986 in Korea, Hanon Systems, a subsidiary of Hankook & Company Group, is a leading global automotive thermal management solutions provider.
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Hanon Systems operates three facilities in Canada: two Belleville plants (fluid transport) and one Concord plant (electronics and fluid pressure, E&FP), with a total head count around 900 employees.
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On February 5, 2026, Prime Minister Carney announced Canada’s new automotive strategy to secure domestic manufacturing, support innovation and attract new investment in EV manufacturing and connected technologies.
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The Strategic Response Fund helps Canadian industries innovate, adapt and compete in a changing global economy. It supports large-scale, transformative projects that build economic resilience, strengthen supply chains and protect good jobs in key sectors such as steel, aluminum, automotive, forest products, AI and advanced technologies.
Source: Government of Canada. https://mobilesyrup.com/2026/08/06/canada-10-million-investment-ev-manufacturing-facilities/
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