A roundup of the greater than $46 billion invested since 2020, and the way governments have chipped in
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The federal and Ontario governments introduced a take care of Honda Motor Co. Ltd. Thursday that may see the Japanese automaker set up an electrical car provide chain and meeting plant within the province. The $15-billion challenge, billed by Prime Minister Justin Trudeau as the most important automotive funding in Canadian historical past, is the newest in a string of main investments, facilitated by authorities, geared toward making Canada a participant within the international EV provide chain.
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The Monetary Publish’s Denise Paglinawan rounds up the largest funding up to now, now totalling greater than $46 billion since 2020, and the way governments have chipped in.
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Stellantis NV and LG Vitality Resolution
In March 2022, Stellantis NV and LG Vitality Resolution introduced plans to take a position greater than $5 billion to construct a lithium-ion battery plant in Windsor, Ont., after reaching a “binding” financing take care of the governments of Canada and Ontario. After building was briefly halted in a dispute over subsidies, the governments of Canada and Ontario confirmed in July final yr that they would offer the challenge with efficiency incentives price as much as $15 billion, with Ontario masking one-third of the fee, supplied the businesses meet sure situations. The federal authorities subsidy will come within the type of efficiency incentives, based mostly on the variety of kilowatt-hours produced.
Volkswagen AG
In a deal first introduced in March 2023, the federal and Ontario governments stated the German automaker, via its subsidiary PowerCo, will construct its first abroad battery manufacturing plant, valued at $7 billion, in St. Thomas, Ont. Volkswagen says the gigafactory can have sufficient capability to construct batteries for as much as a million EV’s per yr. Much like the Stellantis deal, Volkswagen may obtain important efficiency incentives, completely at the very least $13 billion. An extra $2.8 billion in federal tax changes may carry the general value to Ottawa to $16.3 billion, in response to the parliamentary price range officer.
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Northvolt AB
Swedish producer Northvolt AB plans to open its first North American electrical car battery plant close to Montreal by 2026, with the assistance of beneficiant subsidies just like commitments for Volkswagen and Stellantis factories in Ontario. The challenge is valued at a complete of $7 billion. In September, Canada pledged to contribute as much as $1.34 billion to help Northvolt throughout building and battery manufacturing, whereas Quebec’s authorities will present as much as $2.9 billion in capital dedication to safe the deal. The governments additionally dedicated to match subsidies accessible for U.S. manufacturing underneath the Inflation Discount Act, equalling as much as US$35 per kWh produced.
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Ford Motor Firm
Ford Motor Firm, along with South Korea’s EcoProBM and SK On, introduced in August that it’ll construct a cathode manufacturing facility in Bécancour, Québec to provide battery supplies for Ford’s future electrical autos. The challenge is valued at greater than $1.2 billion. The brand new facility is Ford’s first funding in Québec and a part of the automaker’s plan to localize key battery uncooked materials processing in areas the place it produces EVs. Manufacturing is ready to start within the first half of 2026. The federal and Quebec governments introduced funding of $644 million for the development of the brand new battery supplies manufacturing plant, with Ottawa contributing a conditional $322 million via the Strategic Innovation Fund, and Quebec offering {a partially} forgivable mortgage of $322 million via Investissement Québec. The corporate can be investing $1.8 billion to repurpose its meeting advanced in Oakville, Ont., however introduced earlier this month that the plant wouldn’t start assembling EVs there till 2027, two years later than initially deliberate.
• E mail: dpaglinawan@postmedia.com
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