The decision to pause the expansion of the Maple Ridge factory, which would have created 350 jobs, is the latest retreat from clean-energy ventures in B.C. and around the world
The company that proposed a $1 billion expansion of its Maple Ridge lithium-ion battery factory has hit pause on the plan and the 350 jobs it would have created.
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Premier David Eby and Prime Minister Justin Trudeau were on hand a year ago for the project’s unveiling, which Trudeau heralded as “the future we are building together,” because “(climate) policy is economic policy.”
The federal government promised $205 million and the province $80 million to support reconstruction of E-One Moli’s facility to produce high-performance rechargeable batteries for niche applications such as commercial-grade power tools, while making B.C. a global leader in clean technology.
In the year since, however, the economics for electrification through battery power have changed, according to the company, E-One Moli Energy (Canada) Ltd., which also uses the name Molicell.
“Over the past year we have seen major scale back in electrification projects globally with over 17 major (lithium-ion battery) manufacturing investments cancelled or postponed,” Frank So, executive vice-president of E-One Moli, said in an email.
E-One Moli’s Maple Ridge factory is capable of producing 24 million battery cells a year now. According to So, the company wasn’t able to secure an anchor customer for the expansion, which was intended to produce 130 million battery cells a year.
E-One Moli’s Taiwanese owner, Taiwan Cement Corp., confirmed the decision during its annual general meeting Nov. 22. Chairman Nelson Chang said E-One Moli informed the federal government of its decision.
Chang added that E-One Moli would not build a new plant abroad until reaching “full efficiency” at the so-called gigafactory it has built in Xiagang, Taiwan.
Taiwan Cement Corp. is the second company to hit pause on a major green investment in B.C. after Australia-based green hydrogen producer Fortescue backed away earlier this year from a $2 billion hydrogen plant proposed for a site near Prince George. Fortescue’s decision was part of a global restructuring of the company, but in B.C., it was unclear how the company would secure the 1,000 megawatts of electricity it needed.
In a statement, the Ministry of Energy and Climate Solutions, said it was disappointed to learn about the E-One Moli project’s delay and that “adjustments” in the EV and green-hydrogen sectors were not unique to B.C. but “part of a global recalibration driven by market conditions.”
“Our province remains well-positioned to adapt and continue attracting investments thanks to our skilled workforce, supportive policies, and abundant clean energy resources,” the ministry said.
It added: “Since introducing CleanBC five years ago, new jobs and investments are up, and emissions are down. B.C. has gained 79,200 jobs over the past year, including some of the strongest private sector job growth in the country.”
In Maple Ridge, Mayor Dan Ruimy said by email that the city remains “committed to working with businesses like Molicell to support investment and innovation in our community.”
“The company noted that the Canadian expansion is still a sound investment,” Ruimy said in the statement. “However, corporately they have made the decision to hold the project to better understand their market position before starting construction.”
In both cases, the projects ran into uncertainties about continuing government support for “green ventures,” according to economist Werner Antweiler at the University of B.C.’s Sauder School of Business.
“If you have a sense that the policy may get disrupted by the next government, that pulls the floor out underneath some of these business models,” Antweiler said, referring to the 2025 federal election.
On hydrogen, Antweiler said support has wavered for policies such as carbon taxes and B.C.’s clean fuel standard, which make diesel and gasoline more expensive.
“(Hydrogen) prices are falling, but until they’re competitive, they do rely on these policies that level the playing field (with) conventional fossil fuels,” Antweiler said.
In the lithium-ion battery sector, Antweiler said uncertainty is being driven by flagging demand for electric vehicles, which has flooded the EV battery market with excess supply.
“Ultimately, it comes down to if overseas manufacturers of batteries can provide a cheaper product,” Antweiler said. “To stay competitive, you have to have something that’s a unique quality advantage.”