By Steve Scherer

OTTAWA (Reuters) -Canada on Monday will announce its support for General Motors Co’s multi-billion-dollar investment in two plants, including one that will produce electric commercial vehicles (EVs), a government source said.

Both the federal government and Ontario’s provincial government will invest in the two GM plants in Ingersoll and Oshawa, said the source, who provided no further details and was not authorized to speak on the record.

Scott Bell, GM’s Vice President Global Chevrolet, Canada’s federal Industry Minister Francois-Philippe Champagne and Ontario Premier Doug Ford will make an announcement about “an important investment in the future of Canada’s automotive manufacturing sector” at 11 a.m. EST (3 p.m. GMT) on Monday, according to a statement.

The announcement will take place at a GM vehicle test track in Oshawa, the company said. GM declined to comment further.

GM said early last year it would invest C$1 billion ($799 million) to convert its CAMI Assembly Plant in Ingersoll, Ontario, to produce its BrightDrop EV600 commercial delivery vans.

Toward the end of last year, GM reopened its Oshawa plant – after it had been shuttered for two years – to produce the Chevrolet Silverado pickup.

Canada is trying to safeguard the future of its manufacturing heartland in Ontario as the world seeks to cut emissions by investing in the electric vehicle (EV) supply chain.

Ontario is geographically close to U.S. automakers in Michigan and Ohio, including GM.

Last month GM and South Korea’s POSCO Chemical said they would build a $400 million facility to produce battery materials in Canada as the carmaker ramps up plans to produce mainly electric vehicles (EVs) in the future.

GM plans to have capacity to build 1 million electric vehicles in North America by the end of 2025.

($1 = 1.2518 Canadian dollars)

(Reporting by Steve Scherer; Editing by Daniel Wallis and Chizu Nomiyama)

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