A new tax credit in Tuesday’s federal budget is fuelling industry speculation that Canada is close to landing a massive electric-vehicle investment by Honda.
“There’s a very short list of very big companies who are looking at a very big investment and talking to Canada, Ontario and Quebec, to whom this would apply,” said Automotive Parts Manufacturers’ Association president Flavio Volpe, referring to the two provinces vying for major EV commitments. “The translation here is that there are big new EV investments coming.”
That subsidy-matching approach – in which Canada has guaranteed companies of annual subsidies equivalent to production tax credits offered in the U.S. – has to this point been considered a prerequisite to securing the battery factories meant to serve as EV supply chain anchors. One reason for that optimism may be the multifaceted nature of the investment that Honda is considering.
Other companies could also take advantage of the new incentive, along with the others being offered by the federal and provincial governments.