To read this content please select one of the options below:

Canada needs record subsidies to attract new plant

Friday, April 21, 2023

Significance

Volkswagen (VW) announced last month that its first battery facility outside Europe would be built in Ontario. While Canada has strong potential in this sector, the scale of the subsidy it offered indicates the degree of competition in North America to win such plants.

Impacts

  • Canada now has six of the seven major global auto manufacturers active within the country, with most committed to EV production.
  • Negotiations continue over subsidies for another battery plant in southern Ontario, this one an LG-Stellantis joint venture.
  • Canada’s minerals strategy to support EV production will boost the mining sector as the share of GDP from fossil fuels falls.

Related articles

Expert Briefings logo