British Columbia – Marc Miller, Minister of Immigration, Refugees and Citizenship, talked about the new Electric Vehicle Supply Chain investment tax credit. he said:
Thank you for the introduction, Minister Valdez. And thank you, Ministers Khera and Qualtrough, for joining us today. Before I begin, I’d like to acknowledge that we are gathering on the traditional and unceded territories of the Coast Salish peoples, who have been stewards of this land since time immemorial.
I’m pleased to be back in the Lower Mainland today. And to see so many electric vehicles on the roads. I know you also have electric buses, electric ferries, electric helijets—even electric tugboats now. British Columbians are going electric at a rate higher than anywhere else in North America. In 2023, more than 1 in 5 new vehicles sold in this province was an EV. That’s an impressive statistic—and one the rest of the country can aspire to.
Because in December, we mandated that all new vehicles sold in Canada must be zero-emission by 2035. As more and more EVs are being manufactured worldwide, we continue to support the automotive industry in retooling its facilities and building new factories, so our country can seize the opportunities coming out of the global push to go electric.
As Canada steps to the forefront of this growing global supply chain, it will secure good paying jobs for a generation to come. From miners gathering critical minerals for car batteries, to unionized workers on auto assembly lines, to the truckers that get cars to dealerships—there will be jobs for workers of all ages, in all parts of the country.
Earlier this year, BloombergNEF recognized Canada as having the strongest EV supply chain potential in the world, passing China which has held the top spot since the ranking began. The United States came in third.
This first-place ranking is a testament to Canada’s abundant clean energy and high labour standards.
And with our world-class natural resource base, talented workforce, attractive investment climate and access to markets, Canada will become an electric vehicle supply chain hub for all steps along the manufacturing process. That’s what Canada’s major economic investment tax credits are doing—seizing Canada’s full potential, and doing it right.
Helping innovative Canadian firms scale-up is essential to increasing the pace of economic growth in Canada. Already, the Cleantech Group’s list of the 100 most innovative global clean technology companies featured 13 Canadian companies last year—the second highest number of any country, behind only the U.S.
Budget 2024 announces the next steps in the government’s plan to attract even more investment to Canada, to create jobs and accelerate our switch to clean energy and clean technology. Businesses that manufacture electric vehicles and precursors would already be able to claim the 30% Clean Technology Manufacturing investment tax credit, as announced in Budget 2023. We now want to give additional support so businesses choose Canada for more than one stage in the manufacturing process.
In Budget 2024, we will introduce a new 10% Electric Vehicle Supply Chain investment tax credit on the cost of buildings used in key segments of the electric vehicle supply chain, for businesses that invest in Canada across three segments of the electric vehicle supply chain: cathode active material production; battery production; and vehicle assembly.
The EV Supply Chain investment tax credit is expected to cost $80 million over five years, with an additional $1 billion up until 2035. Keep in mind that by 2050, clean energy GDP could grow fivefold—up to $500 billion—while keeping Canada on track to reach net-zero by then. Proof, once again, that good climate policy is good economic policy.
Details of the EV Supply Chain investment tax credit will be in the 2024 Fall Economic Statement. But since this and other investment tax credits will be available retroactively, businesses are already starting to break ground on projects that will reduce emissions, create jobs, and grow Canada’s economy. These are major economic investment initiatives. And by passing these tax credits into law, we’ll be on the road to a cleaner, more prosperous future for all Canadians.
Thank you.