Parliamentary Budget Officer Yves Giroux waits to appear before the Senate Committee on National Finance, Tuesday, October 17, 2023 in Ottawa. A report from the Parliamentary Budget Officer says the total cost of provincial and federal support for electric vehicle battery manufacturing in Canada will be $5.8 billion more than announced government projections. THE CANADIAN PRESS/Adrian Wyld
OTTAWA – A report from the Parliamentary Budget Officer says the total cost of provincial and federal support for electric vehicle battery manufacturing in Canada will be $5.8 billion more than government projections.
The report analyzes the costs to governments of recent deals struck with Northvolt, Volkswagen and Stellantis-LGES to locate EV battery manufacturing facilities in Canada.
It pegs the total cost of government support at $43.6 billion between 2022 and 2033, which is $5.8 billion higher than the $37.7 billion in costs announced by Ottawa and the provinces.
The report says the extra $5.8 billion represents foregone corporate income tax revenues for the federal, Ontario and Quebec governments.
Of the total $43.6 billion in costs, 62 per cent will be borne by the federal government and 38 per cent will fall on the governments of Ontario and Quebec.
The report also estimates a break-even timeline for governments of 11 years for the Northvolt production subsidy, 15 years for the Volkswagen subsidy and 23 years for the Stellantis subsidy.
This report by The Canadian Press was first published Nov. 17, 2023.
