- Canada’s prime minister is trying to establish a solid EV supply chain in the region
- A $1.6 billion lithium-ion separator plant was recently announced for Ontario
- Honda has also committed to investing CA$15 billion into BEV factories in Canada
Canada’s Prime Minister Justin Trudeau has refused to say if the country will follow the lead of the United States in significantly hiking tariffs on battery-electric vehicles imported from China.
On the same day, May 14, the Biden administration confirmed that existing U.S. tariffs on Chinese EVs would rise from 27.5% to 102.5%, Trudeau attended the opening of a lithium-ion separator plant in Ontario. This facility is an integral part of Canada’s plan to build a solid EV supply chain in the region.
Read: Biden Quadruples Chinese EV Tariffs to 100%
“Obviously, we’re closely watching what our closest trading partner in the United States is doing,” Trudeau said in relation to the U.S. tariff hike. When asked about the new tariffs, the Prime Minister didn’t confirm nor deny if Canada will do the same, Auto News notes.
Currently, Canada doesn’t have any significant tariffs on Chinese-made EVs. At the same time, it’s hoping to establish itself as one of the best places “to invest in an EV supply chain.”
Ontario’s new lithium-ion separator plant will cost approximately $1.6 billion and produce 700 square meters of a coated membrane used in lithium battery manufacturing each year. Global News reports the federal government is contributing $2.5 billion in tax credits to the project while the Ontario government is also contributing $2.5 billion, which will be allocated to capital costs and land servicing costs for future facilities.
In nearby Allison, Ontario, Honda is investing CA$15 billion to convert an existing factory to a site solely building EVs. It will establish a large battery plant nearby and open two battery part facilities in Ontario.
“After decades of decline in our manufacturing communities and in an uncertain world where we’re facing a lot of new challenges, we have a plan to meet this moment, a plan to secure the future for our families to breathe life into our main streets and to position Canada as the most reliable supplier in a net zero world,” Trudeau said at a ceremony for the lithium-ion separator plant.
