Canada “is, and will remain, a nation that builds cars,” according to the federal government.
The government also says it recognizes “that the future of the automotive industry is electrified.”
Through a series of “deliberate and strategic investments,” Canada suggests it is “positioning itself as a global leader in vehicle electrification” as well as “the battery supply chains that will power the future of mobility.”
The federal government posits that “clean electricity and energy infrastructure will power our economy” moving forward.
The announcement follows Canada agreeing to a partnership with China related to EV manufacturing, a move which the government claims will “further diversify trade and catalyze new investment in the automotive sector.”
Canada says it will support the sector through a “series of fiscal measures,” including The Productivity Super-Deduction, which allows automotive manufacturers to write off a larger share of the cost of investments in the first year, and the Clean Technology Manufacturing Investment Tax Credit, a refundable tax credit that incentivizes large-scale investments by reducing the costs of new machinery and equipment used to manufacture or process key clean technologies.
The government will also dedicate up to $3 billion from the Strategic Response Fund and up to $100 million from the Regional Tariff Response Initiative to support investment in automotive manufacturing.
Canada also intends to force the issue, doubling the stringency of Canada’s greenhouse gas emissions standards by 2035 in order to “drive a 75% EV adoption rate.”
By 2040—through investments in EV production, consumer incentives, and charging infrastructure—the government says it aims for “the aspirational goal of achieving a 90% EV adoption rate.”
These investments include a “targeted five‑year EV affordability program to accelerate EV adoption by offering incentives to consumers and businesses for the purchase or lease of eligible cars with a final transaction value up to $50,000.”
To address range anxiety and inadequate charging infrastructure, the government says it will soon announce “an ambitious electricity strategy” including “a new national charging infrastructure strategy.”
“Our strategy is about securing and growing the industry that supports 500,000 Canadian jobs,” the government stated.