Police say officers were originally dispatched to a single-vehicle collision on Highway 144 late Wednesday night south of Gogama.
Investigators say the driver tried to flee the scene by attempting to steal a tow truck before the officers arrived.
Police allege the driver brandished an improvised explosive device and threatened to deploy it if the officers interfered.
Following negotiations with police, the man surrendered the device, but the highway remains closed as experts work to locate and neutralize any explosives at the scene.
Police say Ryan Paul of Chatham, Ont., faces charges that include possession of a weapon for a dangerous purpose and possession of explosives without lawful excuse.