Hanon Systems Canada Funding Supports EV Compressor Manufacturing

Hanon Systems announced that it will receive CAD 10 million in funding from the Government of Canada for an electric compressor manufacturing plant and R&D centre in Vaughan, Ontario. The investment is intended to accelerate the Canadian automotive industry’s transition toward electrification while strengthening the country’s automotive supply chain. The project represents a significant manufacturing and research commitment focused on electric compressor technology for vehicles adopting electrified powertrains.

The project has a total value of CAD 198.75 million, including a direct investment of CAD 155 million by Hanon Systems. Through the initiative, the company plans to establish annual production capacity of up to 1.5 million vapour-injected electric compressors for electric vehicles (EVs) and hybrid electric vehicles (HEVs) by 2034. The facility and R&D centre in Vaughan are therefore positioned to support expanded domestic production capabilities and the broader development of electrified automotive technologies in Canada, while Hanon Systems’ origins in South Korea remain part of its international business footprint.

Frequently Asked Questions

How much funding will Hanon Systems receive from Canada?
Hanon Systems will receive CAD 10 million in funding from the Government of Canada for its electric compressor manufacturing plant and R&D centre in Vaughan, Ontario. The funding forms part of a CAD 198.75 million project, which includes CAD 155 million in direct investment by Hanon Systems. The initiative is designed to accelerate the Canadian automotive industry’s transition to electrification and strengthen the domestic automotive supply chain. The project will also support production of vapour-injected electric compressors for electric and hybrid electric vehicles.