Ottawa sees in Volkswagen – which will build a battery factory in Ontario – the example of resistance to American protectionism. In the Quebec electric transport sector, which pleads for a reinforced strategy in Washington’s offensive, we would have liked to be more reassured.
As a curtain raiser for the International Summit on Electric and Intelligent Transport (TEI), which brings together some 1,200 representatives in Montreal until Wednesday, it was the German car manufacturer that caught the eye.
Volkswagen on Monday confirmed information from The Press released last December that it will build a mega-factory for batteries for electric vehicles in Ontario, more precisely in St. Thomas.
This multi-billion dollar project, the value of which has not yet been revealed, is the “biggest investment in Canadian automotive history”, according to the Minister of Innovation, Science and Industry, François-Philippe Champagne . The latter considers the announcement to be “great news” for Quebec, where the foundations are being laid for an ecosystem bringing together the manufacturers of the main elements of a battery for electric vehicles, such as cathodes and anodes.
PHOTO CHRISTINNE MUSCHI, REUTERS
Canada’s Minister of Innovation, Science and Industry Francois-Philippe Champagne (left) and Prime Minister Justin Trudeau (second from right) speak with students at the International Electric and Smart Transportation Summit ( TEI), Monday at the Palais des Congrès in Montreal.
“We are talking about 60% of the value of a battery, said Mr. Champagne, in a press briefing. This customer [Volkswagen] will be on the Ontario side. When you grow the ecosystem and bring in big players, that brings success. »
A politic disturbing
The arrival of Volkswagen in Canadian territory comes as the Inflation Reduction Act (IRA) – a law of the Biden administration endowed with an envelope of 370 billion US to support, among other things, everything relating to the production of batteries for electric vehicles. – worry. Some fear that US subsidies will short-circuit battery industry projects planned on this side of the border.
By setting the table for a speech by Prime Minister Justin Trudeau, the president and CEO of Propulsion Québec, Sarah Houde, wanted to send a message.
“Our trading partners, both the European Union and the United States, are adopting green industrial policies,” said Ms.me Houde, advocating for the same kind of initiative in Canada. They identify their priority sectors and devote efforts to them. »
A report written by senior federal officials last fall obtained by The Press revealed that the United States could steal projects in Canada in the sector of batteries for electric vehicles thanks to the IRA.
Signals shy
Mr. Trudeau did not respond to Mr.me Houde when he addressed the summit participants. Instead, he welcomed the progress made in transport electrification so far and that his government would “continue to make the investments necessary to succeed”.
Asked about the need to develop a response to the IRA at a press conference, the Minister of Innovation, Science and Industry replied that “we cannot do everything”.
Our objective is to remain competitive with what is happening in the United States, but selectively.
François-Philippe Champagne, Canadian Minister of Innovation, Science and Industry
The Quebec Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, went a little further during an announcement preceding that of Volkswagen. If the Biden plan “keeps him awake from time to time”, the minister does not anticipate a response from Ottawa in the federal budget which will be presented in two weeks.
“In the hours following the IRA filing, I had several discussions with Mr. Champagne and the Department of Finance,” Mr. Fitzgibbon said. The budget comes out on March 28 and we’ll see what’s in it, but today there is no Canadian IRA. »
The Quebec minister believes that the case-by-case approach advocated by Quebec and Ottawa makes it possible to offer measures – financial support, advantageous hydroelectric rates, etc. – able to compete with the American plan. Mr. Fitzgibbon mentioned “four or five issues” where he had nothing to envy to Washington’s strategy.
Even if she “prefers when the announcements are made in Quebec”, Mme Houde welcomed the arrival of Volkswagen in the country. The president and CEO of Propulsion Québec agrees with Mr. Champagne, who believes that the news constitutes a “vote of confidence” for the Canadian ecosystem of electric transport.
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- 9000 employees
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