INGERSOLL, ON—General Motors Co. and labor union Unifor have reached a deal for the automaker to invest nearly C$1 billion ($785.42 million) in its CAMI Assembly Plant here to manufacture commercial electric vans.

Under the tentative deal, GM has agreed to begin large-scale commercial production of EV600, an electric van, at the plant, Unifor says in a statement. GM says work will begin immediately at the plant.

The new deal builds upon recent investments by GM in Canada, which in November had agreed to invest C$1 billion in its Oshawa plant to expand production of its full-size pickup trucks.