The Current State of EV Battery Plants and Projects in Canada

April 21, 2025 TruthUSA

Just five years ago, electric vehicles were hailed as the future mode of transportation. Today, however, the demand for electric vehicles (EVs) and EV battery plants has significantly decreased in Canada and globally due to various factors.

Consumer surveys have highlighted issues such as the high cost disparity between EVs and gas-powered vehicles, concerns about driving range, reliability in cold weather, and the availability of charging stations as deterrents to purchasing EVs. These factors, coupled with rising interest rates, inflation, and other economic factors, have influenced consumer behavior since 2020.

A recent report by J.D. Power revealed that only 11 percent of new-vehicle shoppers in Canada are “very likely” to consider an EV for their next purchase, indicating a significant decline in interest compared to previous years.

This decline in demand marks a stark contrast to the enthusiasm seen a few years ago when companies were eager to invest in the electric vehicle sector.

Since October 2020, several companies have announced investments totaling $46 billion in EV-related projects in Canada. Additionally, governments have pledged around $52 billion in subsidies for plant construction, production, and tax credits, according to estimates by the Parliamentary Budget Officer.

These plants, primarily located in Quebec and Ontario, encompass a wide range of activities, from electric vehicle assembly to the processing of raw materials for battery cells.