German technology giant Siemens (ETR:SIE) will invest $150 million over five years to create a research and development (R&D) facility for battery production in Canada.
The new plant will be located at Siemens’ Canadian headquarters in Oakville, Ontario and will employ artificial intelligence (A.I.) to optimize its R&D work.
Specifically, the new facility will develop A.I. manufacturing technologies with an emphasis on batteries for use in electric vehicles (EVs).
In a news release, Siemens said that it expects the investment will spur higher quality battery production, increase workforce productivity, and enhance recycling of industrial batteries.
The initiative is also expected to improve Canada’s position in the battery manufacturing space.
Siemens’ investment in Canada comes at a time when the federal government in Canada is building closer political and trade ties with its European allies.
With the U.S. set to impose blanket tariffs of up to 25% on all imports from Canada, the governing Liberal Party has made closer ties with Europe a priority.
New Canadian Prime Minister Mark Carney’s first overseas trip was to Europe, where he met with leaders from France, Germany and the United Kingdom.
Siemens stock has risen 21% over the past year to currently trade at €212.95 per share.
