According to a pledge made to Canada’s Unifor union during negotiations for a contract in 2020, American carmaker Ford (NYSE:F) said Tuesday that it will invest $1.3 billion to convert its SUV assembly plant in Oakville, Ontario to create a variety of electric vehicles and battery packs.

According to company representatives speaking on a conference call on Tuesday, Ford intends to start renovating the Oakville complex in the second quarter of 2024, putting most of the factory’s production workers on leave until the new EV assembly system begins operating late 2024.

During a briefing conference call, Ford Canada CEO and President Bev Goodman stated that the switch to EV production in Oakville “will not only strengthen our business, but it will help deliver stable Canadian jobs.”

After Cuautitlán Assembly factory in Mexico switched to producing the Mustang Mach-E SUV, the factory will be the company’s first high-volume conversion of an existing plant in North America to create EVs.

According to Dave Nowicki, Ford’s head of manufacturing operations for electric vehicles, a new battery pack assembly facility will be added to the 70-year-old complex as part of the renovation.

Ford officials declined to say whether the plant will assemble five EV models, as agreed with Unifor.

The Ford and battery partner SK facility will supply the battery cells for the electric vehicles made in Oakville. Nowicki commented on the construction project in Kentucky. He said that it was too soon to say whether the batteries would satisfy the requirements for domestic content to be eligible for U.S. Inflation Reduction Act purchasing subsidies.

Shares of F are up 1.85% in mid-day trading on Tuesday.