Canada's a 'very stable' market for auto investment: Champagne


Ben Cousins, BNN Bloomberg


Innovation Minister Francois-Philippe Champagne says the world has begun to take notice that Canada has all the right factors when it comes to investment in the auto industry.

Champagne, speaking with BNN Bloomberg from the 2024 Canadian International AutoShow in Toronto, said global players have opened themselves to the opportunities that Canada can provide.

“The world has realized that we have the talent, we have the strong ecosystem, we have the critical minerals and proximity to the assembly line, the resources … and access the market,” Champagne said in the television interview on Friday.

“It makes Canada, in a world where you see a lot of turbulence, very stable, very predictable.”

The federal government has made a big push in recent years to attract investment from electric vehicle manufacturers, offering as much as $15 billion in production subsidies to Stellantis NV, $13 billion for Volkswagen AG and $4.6 billion for battery maker Northvolt AB.

Now, Honda is in talks to expand its footprint in Canada, with a bigger manufacturing facility in Ontario and potentially a new battery plant in Quebec, sources told Bloomberg News last week.

Champagne said these major investments were meant to keep up with the Inflation Reduction Act from the U.S., but are likely to be much smaller and different in the future as the act hits a “cliff” after 2023.

“Now, you're seeing others who want to complement the supply chain and I think what we're saying to the world now is that Canada is about the most complete supply chain,” he said.

Last week, Canada topped BloombergNEF’s Global Lithium-ion battery supply chain ranking, marking the first time China has not held the top spot. The report highlighted Canada’s “consistent manufacturing and production advances” for its spot as the new world leader in battery supply.

Champagne said his phone has been ringing about more investment opportunities since the ranking came out.

“People realize that Canada is the place to be, we own the podium,” he said. “It's a very good base to be able to attract future investment in the country.”

With files from Bloomberg News