The Liberal’s electric vehicle strategy is taking longer than anticipated and could be altered, according to a Department of Industry briefing note.
Blacklock's Reporter says the document, dated September 27, was drafted just days after Industry Minister François-Philippe Champagne urged Canadians to support the sector.
“The government recognizes any major industrial transformation takes time and that responsible risk-taking is an inherent part of supporting innovation in a competitive global economy,” the briefing stated.
While timelines may shift due to market conditions, the companies spending in Canada remain committed, it added.
Short-term hurdles, including high costs, lengthy production transitions, and slowing global demand, have led automakers worldwide to reassess electric vehicle and battery production plans. As a result, Canada’s own initiatives “may be adjusted,” the note said.
The briefing came just four days after Swedish battery manufacturer Northvolt confirmed 1,600 layoffs. The company, which received $1.34 billion in Canadian subsidies to build a facility in Saint-Basile-le-Grand, Que., later declared bankruptcy in the U.S.
“How are delays and challenges in the automotive industry’s transition to electric vehicles impacting Canada’s spending in the domestic electric vehicle battery value chain?” the note questioned. The government remains committed to electrification and job creation, it said.
On September 23, Champagne told reporters that Canadians should rally behind Northvolt and similar firms. “We have to rally around them and help them,” he said, emphasizing that long-term success takes time. “Look at Tesla. It took 17 years before it was profitable.”
The briefing note preceded two key policy shifts: Transport Canada’s January 10 decision to phase out its $5,000 rebate for new electric vehicle buyers and former U.S. President Donald Trump’s January 20 executive order that eliminated electric vehicle mandates under the banner of “Unleashing American Energy.”