Ontario expects to land another major electric vehicle battery plant commitment soon as Canada’s most populous province races to secure its auto sector’s future amid a narrow window of opportunity.
Ontario Economy Minister Vic Fedeli said the province is confident it will land at least one more out of three current prospects it is courting. “The window in EV is going to close very, very shortly,” Fedeli said in an interview. “It’s starting to close now, meaning that everybody needs a dance partner.”
The province has already scored major battery plant investments from Stellantis NV, Volkswagen AG and Honda Motor Co. with the help of billions in government incentives.
Sponsored · Selkirk Copper Mines
Ontario has jumped into the global competition deploying public money to lure electric vehicle manufacturers. It argues it must act swiftly to maintain auto assembly operations amid an aggressive push from the U.S. and China. The strategy also aims to secure the long-term viability of existing plants that may wind down gasoline-powered production.
READ: Panasonic Warns of Weakness in Auto Battery Business Amid EV Slowdown
For the estimated C$15 billion Honda deal, federal and provincial governments provided up to C$5 billion in incentives including tax credits and capital cost support. Canada matched enormous U.S. subsidies to get Volkswagen and Stellantis’ battery plant commitments.
The EV investment pursuit comes as global electric vehicle demand slows after years of breakneck growth. Still, Fedeli argues there is “long-term life” in the investments given robust North American sales and government mandates promoting EV adoption. Ontario’s Ford Motor Co. however recently delayed plans for electric vehicle production at its Oakville plant until 2027, citing a need for stronger consumer demand.
Information for this story was found via Bloomberg and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
