Massive Indigenous-owned battery plant to be built on Vancouver Island

Artistic rendering of the battery manufacturing plant at Malahat Business Park. (Energy Plug Technologies/Malahat First Nation)

Vancouver Island is set to see one of its largest high-tech industrial manufacturing investments in decades, and it is also a project owned and spearheaded by the Malahat First Nation.

It was recently announced that the First Nation has partnered with Energy Plug Technologies to build a 100,000 sq ft gigafactory for manufacturing and assembling lithium-iron-phosphate battery storage products.

The Indigenous-led facility will be built on the First Nation’s reserve — specifically on a portion of the 44-acre Malahat Business Park. The reserve in Mill Bay is located on the west side of Saanich Inlet — northwest of Greater Victoria, situated directly on the Trans-Canada Highway, and adjacent to BC Ferries’ Mill Bay Ferry Terminal.

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This is a partnership with Vancouver-based Energy Plug Technologies, which will have a 49% stake in the facility, with the First Nation holding the majority ownership interest of 51%.

Site of Malahat Business Park. (Google Maps)

Site plan of Malahat Business Park. (Malahat First Nation)

Site of Malahat Business Park. (Google Maps)

Preliminary conceptual artistic rendering of the battery manufacturing plant at Malahat Business Park. (Energy Plug Technologies/Malahat First Nation)

The plan is to produce 100 MW of battery packs in the first year, and drastically scale up to 1,000 MW of products by the fifth year. The total output will reach 10 GWh by the 10th year of operations.

These grid-scale battery storage systems will be suited for residential, commercial, and industrial uses, with the products ranging from 5 kW to 50 MW. With the acceleration in the transition from fossil fuel-powered building systems to electrification, there is growing global demand for such products.

According to Energy Plug, the main product line of lithium-iron phosphate batteries is superior for its battery chemistries, including cost-effectiveness, lifespan, and safety. But over time, they will also look into expanding into producing lithium nickel manganese cobalt oxide, sodium-ion, and solid state batteries.

“We have a responsibility to the environment and the community we live in that benefits all of our stakeholders and the planet. This necessitates close collaboration with key indigenous partners. We are not only advancing a critical technology solution for the industry but also expediting the energy transition in Canada and North America alongside our partners at Malahat Nation,” stated Broderick Gunning, Energy Plug’s president & CEO.

This on-reserve project as part of the business park provides the First Nation with a new revenue and economic development opportunity. It is estimated that once the facility is operational, it will support 100 local manufacturing jobs, including jobs for Indigenous people.

Artistic rendering of the battery manufacturing plant at Malahat Business Park. (Energy Plug Technologies/Malahat First Nation)

Artistic renderings for the project also show that in addition to the manufacturing space, there will also be some office space to support the plant’s operations and rooftop solar panels.

No firm timeline has been established for when the project could begin construction and reach completion. However, in December 2023, Energy Plug announced a partnership to provide Ximen Mining with clean power storage and generation systems for their Kenville gold mine in Nelson, BC. This will help reduce the mine’s use of diesel, and ensure there is no downtime during power outages. The mine’s system will recharge during off-peak hours and feed the energy back into the grid during peak load times, which is typically in the early evening.

“Our vision entails delivering the highest quality, locally produced battery technology to enhance industry while building a model that enables sustainability, energy independence and environmental objectives,” said Tristan Gale, executive director of environment and sustainable development for the Malahat First Nation.

Other major business ventures by the First Nation include the nearby recently-built Malahat SkyWalk and the future Malahat Film Studios, which would also be constructed at the business park.

This is not British Columbia’s only major battery plant project, as construction will begin this June on the $1 billion redevelopment of E-One Moli Energy’s existing facility at Maple Meadows Business Park in Maple Ridge for a brand new replacement and expanded complex spanning 450,000 sq ft for research, development, and manufacturing. The federal government is providing an investment of $205 million, while the provincial government is covering $80 million. This new plant in Metro Vancouver is expected to open in 2028.

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