Government Programs · Historical report

FedDev Ontario announces $5 million for Ontario Tech defence technology hub

The federal investment will expand Ontario Tech University’s Automotive Centre of Excellence in Oshawa, with the project aimed at supporting domestic commercialization and manufacturing of defence-related technologies.

By Grant Sullivan · Source dated May 19, 2026 · Published July 22, 2026

Investment supports Oshawa facility expansion

The Federal Economic Development Agency for Southern Ontario announced a $5 million investment in Ontario Tech University’s Automotive Centre of Excellence, or ACE, on May 19, 2026. The funding is intended to expand the Oshawa facility into a Canadian defence technology hub aligned with Canadian and allied military standards.

According to the announcement, the project will help strengthen Canadian capabilities for advanced vehicles, aerospace systems, drones and other emerging defence-related technologies. The stated aim includes helping manufacturers and innovators commercialize products domestically.

The agency said companies will have local access to expertise and strategic infrastructure through the project. It identified stronger supply-chain resilience, a larger defence industrial base, innovation and high-skilled jobs among the intended outcomes.

Testing and research capacity is set to grow

Ontario Tech University provides testing, research and development services to industry partners in mobility, clean technology and advanced manufacturing, according to the release.

Ontario Tech said upgrades to ACE will expand its testing and research capabilities across defence, aerospace and transportation. The university said the work will enable higher-speed and higher-capacity testing and support innovation in military vehicles, heavy-duty transportation and AI-enabled automotive technologies.

The release also notes that Ontario Tech was the primary build and testing site for the Automotive Parts Manufacturers’ Association’s Project Arrow zero-emission vehicle initiative. It continues work in later phases of Project Arrow 2.0 and beyond.

RDII delivery in southern Ontario

The Regional Defence Investment Initiative, known as RDII, is a national $379.2-million investment delivered by Canada’s regional development agencies. It supports business growth and integration into domestic and international defence supply chains.

FedDev Ontario delivers RDII in southern Ontario. The agency says it is allocating additional resources to help businesses pursue defence opportunities and strengthen Canada’s industrial capacity.

The source describes RDII alongside the Ontario Tech investment, but does not state that the $5 million ACE project is funded through the initiative.