Ottawa, Ontario — The federal government announced the 2023 budget last week, which includes moves intended to attract investment in EVs and their batteries and components.
The 30 percent investment tax credit is for capital investments in manufacturing equipment used to make or process clean technologies, as well as investments in technology for the extraction, processing or recycling of key critical minerals.
Some eligible investments include “manufacturing grid-scale electrical energy storage equipment; manufacturing of zero-emissions vehicles; and manufacturing or processing of certain upstream components and materials” like cathode materials and other battery tech.
The budget anticipates to pay out $11.1 billion toward the credit.
Automotive Parts Manufacturers Association President Flavio Volpe told Automotive News Canada that the 30 percent credit was a “great response to the U.S. offering.”
It’s a “welcome first step,” he said, but “significantly more investment” is needed–especially in charging infrastructure–to increase EV adoption in Canada.
The Canadian government expects to spend more than $80 billion on investment tax credits for clean technology and renewable energy over the next 12 years. It also hopes to draw in more investment through the private sector.
Click here to see the 2023 Budget.
