BMW Group, which currently doesn’t have a major manufacturing presence in Canada, said Monday its gigafactory for the U.S. market will buy battery materials made north of the border by Belgian battery tech firm Umicore, which is expanding in Canada. The federal government is putting $551.3 million toward the project and the Ontario government is contributing $424.6 million. (The Logic)

Talking point: Umicore said its deal with the governments includes €580 million in non-refundable capital expense grants, with potential for an additional €100 million, plus €100 million in tax credits. The company, which also works closely with automakers like Volkswagen, announced plans for a $1.5-billion plant near Kingston, Ont., last year. It said Monday’s announcement of the governments’ subsidies unlocks “a potentially larger project” in the area, with “firm” plans to spend $2.1 billion on the first stage of the project. BMW said it plans to “source components like battery cells close to vehicle production and gradually localize the supply chain” and that “Canada is playing a strong role in establishing” its North American battery cell business.