The Canadian automotive sector, which is mostly located in Ontario, has always been highly dependent on the existence of a strong market, and of course on market access, in the US. Will such high reliance on the US market be possible with made-in-Canada electric vehicles? And will the actual market demand for EVs be as high as anticipated to justify the recently announced massive investments and subsidies?
We will look at these considerations in this analysis, which stresses the critical role of national-level politics, both in the US and in Canada, for the future of EVs in North America. Other important factors, such as the competition from China and disparate electricity prices, are also looked at. We then show that the report by Canada’s Parliamentary Budget Officer about the billions of dollars of subsidies for battery plants in Ontario, while highly critical of the governmental decisions, actually underestimates the risks of those investments.
Article at this link: https://covexit.substack.com/p/considerable-market-uncertainties
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