CANADA
EV battery subsidy deals to cost $5.8B more than government projections: PBO report
ALL CAPITALI$M IS STATE CAPITALI$M
, The Canadian Press
A new report from the Parliamentary Budget Officer says provincial and federal support for electric vehicle battery manufacturing in Canada will cost $5.8 billion more than previously announced government projections.
The report, released Friday, analyzes the costs to governments of recent deals struck with Northvolt, Volkswagen and Stellantis-LGES to locate EV battery manufacturing facilities in Canada.
So far, the governments of Canada, Ontario and Quebec have announced a combined $37.7 billion in production subsidies and construction support for the three companies.
But the budget watchdog's report said the total cost of government support between 2022 and 2033 will likely be closer to $43.6 billion, with the extra $5.8 billion representing foregone corporate income tax revenues for Ottawa and the two provinces.
This is because the Canadian subsidies are being designed to match the U.S. Advanced Manufacturing Tax Credit, which is part of that country's sweeping Inflation Reduction Act.
In a June report, the PBO noted that a tax adjustment would need to be provided to the three battery makers to ensure after-tax equivalency with the U.S. program.
Finance Minister Chrystia Freeland has since clarified that the production subsidies provided to Volkswagen will not be subject to taxation, and Friday's PBO report assumes the Stellantis and Northvolt subsidies won't be either.
"To increase transparency around these announcements, we are providing an estimate of the total cost of government support for EV battery manufacturing — including both announced and non-announced costs," said parliamentary budget officer Yves Giroux in a news release.
Of the total $43.6 billion in costs, 62 per cent will be borne by the federal government and 38 per cent will fall on the governments of Ontario and Quebec, the report said.
The report also estimates a break-even timeline for governments of 11 years for the Northvolt production subsidy, 15 years for the Volkswagen subsidy and 23 years for the Stellantis subsidy.
Volkswagen's battery plant will be built in St Thomas, Ont., and the Stellantis-LGES plant will be built in Windsor, Ont. The Northvolt facility will be built about 30 km east of Montreal.
This report by The Canadian Press was first published Nov. 17, 2023.
Parkland strikes electric vehicle station funding deal with Infrastructure Bank
PARKLAND CORP (PKI:CT)
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More electric vehicle charging stations are on the way as the Canada Infrastructure Bank says it has signed a second funding deal to expand fast-charging options.
It's CIB's second major funding announcement for charging stations, after it provided a $220 million loan in April to Flo Inc. to help it build more than 2,000 fast-charging ports across Canada by 2027.
The charging investments come as the federal government works towards a mandate of full electric vehicle sales by 2035 to reduce road transportation emissions, which make up about 18 per cent of Canada's total greenhouse gas emissions.
Ehren Cory, chief executive of the CIB, says the funding will speed up the rollout of fast chargers.
He says companies are already expanding charging options, but it's important that the pace increase.
“The challenge is that if we are going to drive accelerated, widespread EV adoption, we need to reduce range anxiety by getting more high speed chargers deployed faster," said Cory.
“The whole goal here is rapid deployment."
The funding comes from the CIB's charging and hydrogen refuelling infrastructure initiative that has a $500 million funding target, but Cory said he hopes to exceed that amount.
Darren Smart, senior vice-president of energy transition at Parkland, said in a statement that the company's initial investments in electric vehicle charging have been positive with strong customer interest.
This report by The Canadian Press was first published Nov. 16, 2023.
Trudeau, Eby announce $1 billion battery plant in Maple Ridge, B.C.
The Canadian Pres
A lithium-ion battery cell production plant costing more than $1 billion will be built in Maple Ridge, B.C.
Prime Minister Justin Trudeau and Premier David Eby jointly announced that the new E-One Moli facility will bolster Canada's role as a global leader in clean technology.
A statement says the province is contributing up to $80 million, with $970 million coming from the federal government, E-One Moli and private sources.
The plant will produce high-performance lithium-cell batteries found in numerous products, including vacuums, medical devices and power and garden tools.
The statement has no details about when the plant will begin operations, but says it is expected to create 450 permanent jobs.
As part of the agreement, E-One Moli will be switching some of its plant operations from natural gas to electricity, in what the province says is part of its role in the clean-technology industry.
This report by The Canadian Press was first published Nov. 14, 2023.
The Canadian Pres
A lithium-ion battery cell production plant costing more than $1 billion will be built in Maple Ridge, B.C.
Prime Minister Justin Trudeau and Premier David Eby jointly announced that the new E-One Moli facility will bolster Canada's role as a global leader in clean technology.
A statement says the province is contributing up to $80 million, with $970 million coming from the federal government, E-One Moli and private sources.
The plant will produce high-performance lithium-cell batteries found in numerous products, including vacuums, medical devices and power and garden tools.
The statement has no details about when the plant will begin operations, but says it is expected to create 450 permanent jobs.
As part of the agreement, E-One Moli will be switching some of its plant operations from natural gas to electricity, in what the province says is part of its role in the clean-technology industry.
This report by The Canadian Press was first published Nov. 14, 2023.
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