Tallying Government Support for EV Investment in Canada
On April 25, 2024, the Prime Minister announced that since 2020, Canada has attracted more than $46 billion in investments across the electric vehicle (EV) supply chain. This note provides a breakdown of these investments and their corresponding government support.
Weeks ago, on April 25, the Prime Minister announced that since 2020, Canada has attracted more than $46 billion in investments across the electric vehicle (EV) supply chain.[^1] While several of these investments were mentioned in the announcement, a complete list of the more than $46 billion in investments has not been publicly released. Moreover, the Government has not publicly provided a complete list of the corresponding federal and provincial government support for each investment. This note aims to bridge that gap by providing a breakdown of the more than $46 billion in investments, along with the corresponding government support.
Key findings
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From October 8, 2020 to April 25, 2024, a total of $46.1 billion in investments across the EV supply chain has been announced across thirteen project groupings.
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For the $46.1 billion in investments (capital expenses) across the EV supply chain, PBO estimates total corresponding government support (for capital and operating expenses) to be up to $52.5 billion, which is $6.3 billion (14 per cent) higher than announced investments.
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Of the up to $52.5 billion in government support, PBO estimates federal support to be up to $31.4 billion (60 per cent) and provincial support to be up to $21.1 billion (40 per cent).
On May 2, the PBO sent an information request to the Minister of Innovation, Science and Industry seeking a breakdown of the more than $46 billion in investments announced. Based on information provided under this information request, PBO compiled a detailed list of thirteen project groupings that make up the more than $46 billion in total investments using publicly available sources (Table 1). While not necessarily exhaustive of all investments that could be eligible for government support, this list includes investments that have been publicly announced by the Government of Canada since 2020.
Office of the Parliamentary Budget Officer.
Innovation, Science and Economic Development.
Various press releases and media sources (see Table 2).
Office of the Parliamentary Budget Officer.
Innovation, Science and Economic Development.
Various press releases and media sources (see Table 2).
† Includes foregone corporate income tax revenues.
As per the [auto pact agreement](https://deputypm.canada.ca/en/news/statements/2023/07/06/canada-and-ontario-establish-auto-pact-secure-stellantis-lges-and), the federal government will provide two thirds of the combined production subsidy amounts for Stellantis-LGES (NextStar) and Volkswagen (PowerCo), and Ontario will provide one third.
From October 8, 2020 to April 25, 2024, a total of $46.1 billion in investments has been announced across thirteen project groupings. These investments have varying degrees of publicly announced government support, including production subsidies, construction and other support (for example, through the Strategic Innovation Fund), as well as investment tax credits (ITCs).
To estimate the corresponding total government support (federal and provincial) for these investments, we compiled the announced support through ITCs, PBO’s estimates of production subsidies[^2] (including foregone corporate income tax revenues) and announced construction and other support.
For the $46.1 billion in investments (capital expenses) across the EV supply chain, PBO estimates total corresponding government support (for capital and operating expenses) to be up to $52.5 billion.[^3] Total announced government support is $6.3 billion (14 per cent) higher than announced investments. We estimate federal government support to be up to $31.4 billion (60 per cent) and provincial government support to be up to $21.1 billion (40 per cent).