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.

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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.

Sophie Lu, head of metals and mining at BloombergNEF, on global battery supply chain leadership
Tesla charging station
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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

Market access

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.

Incentives

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.

You’re in good company

Recent Investment Announcements

Jun2021

Nova Bus

Nova Bus, part of the Volvo Group (Sweden) announced a total investment of $184 million to modernize its EV manufacturing facilities in Saint-Eustache and Saint-François-du-Lac, Quebec. The Government of Canada is providing $15 million through the Strategic Innovation Fund.

Jan2021

Piedmont Limited

Piedmont Limited (Australia) invested $14.5 million in Sayona Mining’s lithium project in Quebec with a supply agreement for 50% of the mine’s lithium spodumene production.

Jan2021

General Motors

General Motors announced a planned investment of $1 billion to transform its CAMI plant in Ingersoll, Ontario into a hub for producing electric commercial delivery vans.

Oct2020

Stellantis

Stellantis (formerly Fiat Chrysler Automobiles and PSA Group) announced it will invest up to $1.5 billion in a state-of-the-art multi-energy vehicle platform at the Windsor Assembly Plant that will enable the assembly of both plug-in hybrid vehicles and battery electric vehicles, creating up to 2,000 jobs by 2024.

Sep2020

Ford

Ford announced that it will invest $1.8 billion to produce battery electric vehicles in Canada. Ford’s Oakville, Ontario Assembly Complex will be converted from an internal combustion engine (ICE) site to also become a BEV manufacturing facility.

Mar2020

Corvus Energy

Corvus Energy (Norway) is investing $20.8 million in the city of Richmond, British Columbia to expand its energy storage system (ESS) manufacturing plant.

Oct2019

Tesla

Tesla Inc. (US) acquired Canadian battery specialist, Hibar Systems, for an undisclosed amount.

Jul2018

Vale

Brazilian mining company Vale announced it will proceed with construction of an underground mine at Voisey’s Bay, N.L., extending operations by at least 15 years and creating 1,700 jobs.