Batteries and Electric Vehicles (EV)
Battery electric vehicles (EV) are a critical element of the strategies that countries are adopting to meet their pledges to reach net-zero by 2050. Investors that seize the potential of a new supply chain for battery electric vehicles will enjoy higher profitability and contribute to the fight against climate change. Canada is well-positioned to assume leadership across all 5 segments of the EV battery supply chain: mining and mineral processing; cathode and anode manufacturing, and chemical precursors; battery manufacturing; electric vehicle manufacturing and parts supply; and battery recycling.
Key distinguishing factors are the environmental footprint of industry, the availability of cheap but clean electricity, a technically skilled labor force, and incentives driving battery demand.
EV Batteries: Why Canada is the Place to Invest
Canada’s battery and electric vehicle industry offers a truly circular supply chain—from mines to manufacturing to recycling—and presents opportunity for investment in all sections of this chain.
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Investing in batteries and electric vehicles in Canada
Canada has 14 free trade agreements with 51 countries, representing approximately 1.5 billion people and 63% of the worlds GDP. Canada’s ports and infrastructure in both the Atlantic and Pacific oceans are well-equipped to meet current and future demand. Aided by tariff-free access to the U.S. market for motor vehicles through CUSMA, Canada is expected to see its ranking for EV demand rise to 6th in the world from its current 11th place.
Part of the Strategic Innovation Fund, the Net Zero Accelerator fund allocates $8 billion over 7 years to expedite decarbonization projects with large emitters, scale-up clean technology and accelerate Canada's industrial transformation. Additional support for innovative projects across all sectors includes $1 billion, on a cash basis, to support private sector investment in cleantech projects.
The Scientific Research and Experimental Development (SR&ED) program provides income-tax credits and refunds for expenditures on eligible R&D activity in Canada.
Canada offers progressive tax incentives with the Accelerated Capital Cost Allowance for businesses to write off 100% of the cost of machinery and equipment used for the manufacturing, processing of goods and production of renewable energy.
Canada’s Global Skills Strategy allows employers to bring in highly skilled talent from abroad in as little as two weeks.
Leading research institutes
- ACE Climatic Aerodynamic Wind Tunnel at the Ontario Tech University
- The Canadian Light Source Synchrotron at the University of Saskatchewan
- Centre for Excellence in Mining Innovation (CEMI)
- Jeff Dahn Research Group & Tesla Partnership at Dalhousie University
- Hydro Quebec’s Center of Excellence in Transportation Electrification and Energy Storage
- Saskatchewan Research Council
- The University of Toronto’s Electric Vehicle Research Centre (UTEV)
- Waterloo Centre for Automotive Research (WATCAR)