Government of Canada invests $300K to support electric vehicle sector in London

In moving towards a more sustainable future, the Government of Canada announced a $300,000 Federal Economic Development Agency (FedDev Ontario) investment for a pilot project for the London Economic Development Corporation (LEDC).

This funding will go towards supporting long-term growth in the electric vehicle sector in the London region.

Filomena Tassi, the minister responsible for the Federal Economic Development Agency for Southern Ontario, made the announcement at the Grove on Wednesday afternoon.

“So what this will do, it’s more the research end to determine ‘what are the opportunities?’ When you have Volksawagen coming here to create the EV battery space,” she said. "What are the opportunities? This is the fact finding mission so we can make the investments.”

The minister explained that this is one of the first steps that the government is taking to boost local job opportunities, while trying to make southern Ontario a hub for automotive manufacturing.

While touring across southern Ontario, Tasso said she’s being told that companies want supply chains close by.

“It’s much easier for [electric vehicle owners] if they can go next door and get another part as opposed to getting a part from another country,” she added. “This is about ensuring that the knowledge is there for SME’s and people with talent to know the areas for them to start up then scale up.”

The federal government — along with some provincial governments, such as Ontario and Quebec — has pledged billions of dollars to companies like General Motors and Volkswagen in an effort to attract business and secure Canada's EV battery supply chain.

The governments of Canada and Ontario earlier this year announced a deal with Volkswagen to see the company build its first overseas battery manufacturing plant in St. Thomas, to the tune of more than $13 billion in subsidies.

“It’s a start of a journey and given the nature of the evolving EV industry I think it gives us the resources and tools to venture into this new industry and see where it takes us over the next year or two,” said Kapil Lakhotia, president and CEO of LEDC.

The funding will go directly towards resources including hiring consultants to help identify suppliers and to partnerships with workforce training organizations, Lakhotia said.

It’s expected that up to 120 regional companies will benefit from this initiative to participate in supplying Volkswagen operations in Canada and Europe.

London’s Mayor Josh Morgan welcomed the investment, calling it a win for the region.

“EV battery manufacturing is coming and it is our time to seize that potential and opportunity to make London a key part of that future, that green future, that new age manufacturing future,” he said. “All of those supply chains that will chase Volkswagen here have the potential to land in our region and our city.”

— With files from CTV’s Spencer Van Dyk