Government respondedPaper451-00234 · Parliament 45

Mass produce Canadian electric vehicles

Petitioners ask the Minister to designate mass production of affordable Canadian-made light-duty battery electric vehicles using Canadian materials and talent as a Project of National Interest and achieve it by 2030. The government responds that it supports electrification, invested in Project Arrow and has funds to support EV and battery production.

Why we would sign this petition

  • Creates domestic jobs and keeps automotive spending and supply chains in Canada by using Canadian materials and talent.
  • Builds a Canadian EV and battery supply chain to help the country compete with international manufacturers and attract investment.
  • Encourages lower-emission transport and leverages Canada’s renewable energy resources for long-term energy resilience and sovereignty.

Why we wouldn’t sign this petition

  • The 2030 target and large-scale industrial scaling are ambitious and could be costly or impractical within the timeframe.
  • U.S. tariffs and global competition cited in the petition could raise costs and limit market access despite domestic production.
  • Existing federal investments and programs may be a more flexible or efficient way to support EV production than designating a single Project of National Interest.

The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.

Official petition

Petition to the Minister of Intergovernmental Affairs and One Canadian Economy WHEREAS: Project Arrow recently demonstrated a light duty battery electric vehicle built with all-Canadian parts; There is no Canadian-owned company producing light-duty battery electric vehicles for public sale; Canadians demand affordable battery electric vehicles; 9 in 10 of the 25 million registered vehicles in Canada are light duty; Battery electric vehicles purchased from Canadian companies will keep money in Canada; China, Germany, France, Japan, and the UK are scaling up their domestic light duty battery electric vehicle brands, and Canada risks falling behind; Mass production of battery electric vehicles in Canada would use Canadian materials facing US tariffs, create high-value jobs, strengthen regional economies, and modernize our industrial base; A transition to light duty battery electric vehicles promotes long-term sovereignty as Canada has abundant renewable energy sources for transport that can be scaled up relatively quickly and cheaply, which is not the case with non-renewable oil and gas; and Battery electric vehicles have significantly less air pollution compared to internal combustion vehicles considering all factors, leading to less health costs. We, the undersigned Residents of Guelph and Wellington County, Ontario, call upon the Minister of Intergovernmental Affairs and One Canadian Economy to identify the following as a Project of National Interest: the mass creation of affordable, battery electric light duty vehicles by one or more Canadian-owned companies using Canadian materials and talent, and to make it a reality by 2030.

Government response

Response by the Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions Signed by THE HONOURABLE MÉLANIE JOLY The Government of Canada supports the automotive sector, including the transition to electrification, which will help maintain and create jobs, promote economic growth and advance the shift towards a net-zero economy. The Canadian automotive sector is anchored by the presence of five automotive manufacturers— Stellantis, Ford, General Motors (GM), Toyota, and Honda— that are supported by a diverse network of nearly 700 automotive parts manufacturers across Canada. Together, vehicle and parts manufacturers directly employ over 125,000 workers in Canada. This does not account for jobs created through the construction and retooling of manufacturing facilities and other indirect Canadian jobs supported by these companies. The Government of Canada, along with provincial partners and the industry, has attracted significant and generational investments for electric vehicle (EV) production and to establish a Canadian battery supply chain. These projects are supported through a number of federal initiatives, including the Strategic Response Fund, Special Contribution Agreements tied to production for specific battery manufacturing projects and Clean Technology Manufacturing investment tax credits. Firms are investing in Canadian jobs and helping to create opportunities for companies across supply chains, across the country and into the future. Dynamic changes in the global EV market have led some companies in Canada to delay EV and battery projects. The Government recognizes that any significant industrial transformation takes time, and that responsible risk-taking is part of supporting innovation in a competitive global economy. While the implementation timeframe for specific projects may vary with market conditions, Canada’s automotive industry remains well positioned for long-term success. The Government recognizes the strategic importance of innovation-driven initiatives such as Project Arrow. The first investment in Project Arrow led to the development of the first Canadian-made, zero-emission concept vehicle, which has been instrumental in showcasing the global competitiveness of Canadian parts suppliers. To build on its success, the Government made a second investment in Project Arrow, to create its fleet of vehicles and more opportunities for Canadian businesses to demonstrate their capabilities and components, further demonstrating the competitiveness of Canada’s suppliers while strengthening the regional automotive supply chain. Overall, these initiatives support Canada’s pursuit of new opportunities across both domestic and global automotive and battery supply chains. Canada recognizes the challenges that U.S. tariffs present to its automotive industry. Since April 2025, the Government announced a series of strategic measures to support businesses and workers in sectors most impacted by U.S. tariffs and trade disruptions, including automotive. The new measures include the following: A new Strategic Response Fund: The government will invest $5 billion through a new fund with flexible terms to help firms in all sectors impacted by tariffs adapt, diversify, and grow, with support provided to industries by new workforce alliances to align training and workforce needs. A new Buy Canadian policy: This policy will ensure that the federal government buys from Canadian suppliers, requiring local content when domestic suppliers are unavailable. This approach will be extended to all federal funding streams and Crown corporations. Immediate liquidity relief: The government will enhance Business Development Bank of Canada loans and provide more flexible financing through the Large Enterprise Tariff Loan Facility, a $10 billion facility designed to support otherwise successful Canadian firms. Regional Tariff Response Initiative: The government will expand support to small and medium enterprises with up to $1 billion over three years, with flexible terms, and increase new non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors.