Canada Automotive Investments In Clean Technology
Canada plans massive investments in its automotive sector for clean technologies and manufacturing of zero emissions electric vehicles (EV). This provides significant business opportunities for U.S. companies.
The Government of Canada, working in conjunction with provincial governments, is targeting carbon neutrality by 2050. The federal government’s Investing in Canada plan has annual investments of over USD 12 billion, and its Green Infrastructure Stream is funding multiple Electric Vehicle Charging Network projects throughout the country. In British Columbia, the Clean Surrey Electric Vehicle Charging Network (announced in January 2021) is just one of the projects developed in a program of more than USD 50 million from joint funding sources.
Major automakers in the region have also signaled a significant shift to EVs. The three largest American automakers operating in Canada recently concluded labor negotiations. These negotiations were based on public and private investment agreements. The largest of these investment agreements were for a duration of 15+ years in Ontario.
Ford announced USD 1.5 billion investments to retool the Oakville, ON, plant, which will be geared toward producing five EV models starting as early as 2025. This plant will also be utilized in the future for EV battery pack production.
General Motors announced a USD 785 million investment in its CAMI Assembly Plant in Ingersoll, ON. This plant will be central to manufacturing commercial electric vans. FCA investment is planning USD 1.14 billion to manufacture plug-in hybrid vehicles or EVs in Windsor, utilizing a new multi-energy platform. The total of Canada’s federal and provincial investments are expected to exceed USD 450 million for the Ford EV developments. Canada’s contributions for GM and FCA projects have yet to be announced.
Toyota Canada announced in February 2021 a new electric vehicle model for Canada.
The Automotive Parts Manufacturers Association (APMA) of Canada launched plans for an original, full-build zero-emission concept vehicle named Project Arrow. In January 2021, shortly after the design competition, the formal Request for Proposals (RFP) for suppliers was released. Artificial Intelligence-enabled database portals are being utilized in this process to maximize searches in the technology integration effort.
The Canadian market has significant business opportunities for automakers. This includes equipment and systems for the new facilities that will be the cornerstone of this emerging direction. These tier 1 and tier 2 automakers will need large volumes of automation equipment, assemblies, components, parts, and materials for the EVs. Both the U.S. and Canadian Governments will be mutually supportive of the critical battery storage need for EVs. Both countries have acknowledged the significance of this joint effort.
The U.S. Commercial Service in Canada is closely following the developments in this important industry. We stand ready to support with advocacy efforts and export promotion efforts. For further information please contact Commercial Specialist Stefan Popescu at Stefan.Popescu@trade.gov.