Honda talks test Canada’s desire to move away from blockbuster EV subsidies
BNN Bloomberg
Canada’s strategy to lure electric vehicle manufacturing is shifting away from multibillion-dollar production subsidies. But that transition will be put to the test as Prime Minister Justin Trudeau’s government negotiates with Honda Motor Co. over a potential new EV battery plant in Canada.
Canada’s strategy to lure electric vehicle manufacturing is shifting away from multibillion-dollar production subsidies. But that transition will be put to the test as Prime Minister Justin Trudeau’s government negotiates with Honda Motor Co. over a potential new EV battery plant in Canada.
Last year, Trudeau’s government signed three unprecedented contracts to match production subsidies being offered to companies in the U.S. The numbers were big: as much as $15 billion for Stellantis NV, $13 billion for Volkswagen AG and $4.6 billion for battery-maker Northvolt AB. Provincial governments in Ontario and Quebec are picking up part of the cost.
Subsidies of this kind will become less central to Canada’s EV manufacturing strategy, the industry minister promises. Having secured so-called “anchor investments,” Canada is turning its attention to building out a broader EV supply chain, said Industry Minister Francois-Philippe Champagne, using tax credits as an incentive to lure investment.
