German technology giant Siemens (SIE) says it will invest C$150 million (US$104 million) to create a research and development (R&D) facility for electric vehicle battery production in Canada.
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The new plant will be located at Siemens’ Canadian headquarters outside Toronto and will employ artificial intelligence (AI) to optimize its R&D work. Specifically, the new facility will develop AI manufacturing technologies with an emphasis on batteries for use in electric vehicles.
In a news release, Siemens said that it expects the investment to 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 and global EV market.
Closer Ties to Europe
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 nearly 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 in March was to Europe, where he met with leaders from France, Germany and the United Kingdom. The stock of Siemens AG has risen 24% over the past year.
Is SIE Stock a Buy?
The stock of Siemens has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on nine Buy, three Hold, and one Sell recommendations issued in the last three months. The average SIE price target of €233.08 implies 10.02% upside from current levels.
