The shock wave had gone around the planet.
More than $400 billion to subsidize green energies and make the United States a world leader in the race for energy transition.
Several spoke of unfair competition. No other country would have the means to compete with such a godsend for businesses.
The pressure was therefore strong on the Trudeau government. No choice to offer an adequate response.
True to form, he wanted to be reassuring.
Canada did not need to butt heads with the United States. It’s about being strategic.
“Canada has the necessary advantages thanks to the Canadians,” proclaimed Justin Trudeau in St-Thomas on Friday.
He was flanked by Doug Ford and the CEO responsible at Volkswagen to formally announce the construction of the company’s first battery plant outside of Europe, potentially the largest in the world.
The issue is the price! Thirteen billion!
- Listen to the Latraverse-Moranville meeting with Emmanuelle Latraverse and Alexandre Moranville on QUB-radio :
New deal
It’s hard to underestimate the threat the Inflation Reduction Act poses to green investments in Canada.
In just a few months, it will have generated $28 billion in private investment south of the border. And it’s only just started.
Toyota, Kia, GM, Panasonic, Samsung, to name a few, are rushing and accelerating the expansion of their production in the United States to take advantage of the immense incentives offered by the Biden administration.
One-upmanship
Thus, whatever Justin Trudeau says, neither the quality of the Canadian workforce, nor the $10 day care centers or the plan to fight against climate change will have been enough to seduce the German giant.
It’s good old cash. Thirteen billion dollars, the equivalent in Canadian dollars of what the United States offered!
To ensure future economic spinoffs from this battery plant, to establish Canada as a world player in this sector, Ottawa will therefore invest $356 per Canadian.
Is it worth it ?
Absolutely, promises Justin Trudeau. His government estimates that in 5 years, the economic benefits will have “paid off” the initial subsidy. Above all, not a penny will be paid before the factory is built, the batteries assembled and sold.
Still, how much money is left now to attract other major companies?
Not badly less than before. Ottawa would only have the means to finance two or three projects of this magnitude.
- Listen to the Latraverse-Moranville meeting with Emmanuelle Latraverse and Alexandre Moranville on QUB-radio :
And Quebec?
The pill is doubly difficult to swallow in Quebec.
It was already frustrating to see Volkswagen choose Ontario and its natural gas over our clean electricity for lack of energy capacity.
Now we see the share of the cake melt away like a skin of sorrow to finance the green projects that are piling up on his desk.
Certainly Bécancour had won the GM cathode plant, essential for batteries. But as they say behind the scenes in Quebec, “it’s peanuts next to Volkswagen. »
However, to have the next megaproject, you will have to be able to deliver mega-energy.
The pressure is now on the shoulders of the super Minister of Economy and Energy, the one and only, Pierre Fitzgibbon.