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Canada is Going All In on New Electric Vehicle Facilities

October 2, 2023
x min read
Canada is Going All In on New Electric Vehicle Facilities

Canada wants in on the electric vehicle movement. And they’re willing to spend big to make it happen.

What’s happening:

  • The Canadian government has committed $28 billion in new subsidies to incentivize the construction of new electric vehicle facilities
  • The subsidies will go towards supporting select companies in building electric vehicle production facilities and accelerating Canadian based manufacturing of lithium batteries

Why it matters:

  • The adoption of electric vehicles is growing at a staggering pace, especially in the United States since the announcement of The Inflation Reduction Act
  • Canada clearly doesn’t want to get left behind in having their own infrastructure for an electric future as there is enormous potential to create jobs and generate tax revenue
  • Canada currently is lagging far behind the United States in terms of infrastructure to support the transition to electric vehicles

Who is making moves:

  • Swedish based battery manufacturer Northvolt will be building a state of the art facility that is 170 hectares in Quebec
  • That facility aims to be able to manufacture enough batteries to supply one million new electric vehicles each year
  • This will be Northvolt’s first ever factory outside of Europe and aims to take advantage of the ample renewable energy Quebec has to offer

Going deeper:

  • While Canada has long been regarded as a leading country for mining companies the vast majority of those projects have historically been focused on gold, silver and precious metals
  • Last year the Canadian government made their first big bet on accelerating lithium mining in Canada with a $27M investment into E3 Lithium (TSXV: ETL)
  • The investment came through Canada’s Net Zero Accelerator Initiative and went towards building out a lithium production plant based in Alberta that can produce battery grade lithium


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