In a recent opinion piece, Kenneth Green argues that Canada's dream of becoming a major electric vehicle producer is fading due to economic shifts, while China stands ready to supply cheap EVs. The article traces the history of EV enthusiasm back to the early 1900s, noting that despite repeated predictions, EVs have yet to dominate the market.
Canada's EV Manufacturing Ambitions Stalled
Canada's push to become an EV powerhouse was solidified in 2023 with the electric vehicle availability standard, requiring all new car sales to be EVs by 2035. However, this mandate faced backlash from automakers and dealers. Prime Minister Mark Carney later cloaked the mandate in existing air pollution regulations, effectively forcing EV adoption.
Despite these efforts, major automakers have pulled back. Ford Motor Co. scrapped its $1.8-billion plan to convert its Oakville, Ont., plant for EV production, instead investing over $2 billion in gasoline-powered Super Duty trucks. Honda postponed a $15-billion EV supply-chain project in Alliston, Ont. Northvolt, Stellantis, and others have also faced delays, despite federal and provincial subsidies totaling $43.6 billion.
China's Role in the EV Market
While Canada's domestic EV production falters, China is poised to fill the gap. The Canada-China strategic partnership allows up to 49,000 Chinese EVs to enter the Canadian market annually at a tariff rate of 6.1 percent. This influx of affordable Chinese EVs could further undermine local manufacturing.
Kenneth Green concludes that Canada's EV superproducer dreams are dying, but affordable EVs from China may still satisfy consumer demand.
