Canada unveils new EV strategy, pledges stronger cooperation with China · TechNode

Canada’s Bold Leap into the Electric Future: Mark Carney Unveils $5.5B EV Revolution with China Ties

In a sweeping announcement that could reshape the North American auto industry, Canadian Prime Minister Mark Carney has launched an ambitious national strategy to supercharge the country’s electric vehicle (EV) sector. Dubbed a “generational shift” by insiders, the plan pairs massive public investment with private sector incentives and deeper trade ties with China, positioning Canada as a serious contender in the global EV race.

The centerpiece of the strategy is a five-year, C$2.3 billion ($1.7 billion) Electric Vehicle Affordability Program, designed to put cleaner cars within reach for everyday Canadians. Under the scheme, eligible buyers will receive direct subsidies to offset the higher upfront costs of EVs—an issue that has long slowed adoption rates across the country. The government is also tightening greenhouse gas emission standards, with a bold target: 90% of all new vehicle sales to be electric by 2040.

But the vision doesn’t stop at consumer incentives. More than C$3 billion ($2.2 billion) will flow into retooling Canada’s automotive manufacturing base, helping legacy automakers pivot to EV production and creating thousands of new green jobs. Another C$1.5 billion ($1.1 billion) is earmarked for expanding the country’s EV charging network, addressing one of the biggest pain points for potential buyers: range anxiety. Tax reductions and credits will further encourage companies to invest in clean technologies, battery production, and EV supply chains.

Perhaps most notably, the plan includes a strategic push to deepen cooperation with China—the world’s largest EV market and a leader in battery technology. By fostering partnerships with Chinese firms and encouraging cross-border investment, Canada aims to accelerate domestic EV manufacturing and boost exports to Asia. This move signals a pragmatic shift in Ottawa’s trade policy, balancing geopolitical caution with the economic realities of the global clean energy transition.

Industry analysts say the combined measures could make Canada a key node in the North American EV ecosystem, complementing similar initiatives in the U.S. and Mexico. Environmental groups have largely welcomed the plan, though some caution that execution—and sustained political will—will be critical to meeting the 2040 target.

For consumers, the message is clear: the electric future is coming fast, and Canada is putting its money—and its manufacturing muscle—where its mouth is.

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