Amid the billions of dollars in Government subsidies committed to Stellantis and Volkswagen to secure battery production in Canada, increased public funding of Automotive research and development in business and education is seen as critical to global competitiveness in the shift toward vehicle electrification.

To ensure that electric vehicle (EV) components are not only built in Canada but also designed in the country, and to help train the highly skilled workforce required by the industry, R&D engineer Madeline McQueen at the University of Windsor’s Centre for Hybrid Automotive Research and Green Energy emphasized the need for government financial support. The Stellantis battery plant under construction in Windsor, Ont., and the Volkswagen plant announced for St. Thomas will require engineers and technicians skilled in EV parts.

Taxpayer funds help mitigate the financial risk associated with leading-edge technology, according to Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association (CVMA). Recognizing the role governments play, policymakers are committed to supporting initiatives. Leading-edge technology research and development carry significant risks, particularly in the early stages.

Attracting large investments in the assembly footprint often brings associated spinoff into research and development. This has been noted by the president of the CVMA, Brian Kingston. Major automotive companies such as GM, Ford, Stellantis, Honda, and Toyota have established technical centers and research facilities in Canada, focusing on developing various automotive technologies.

Several universities in Canada have devoted research centers to automotive research, helping establish the country’s reputation globally. McMaster University, for example, received $50 million in public funding to establish the McMaster Automotive Research Centre (MARC) in Hamilton. The University of Windsor’s Centre for Hybrid Automotive Research and Green Energy conducts research in partnership with Stellantis, Ford, Magna International, D&V Electronics, and BorgWarner.

Government investments in EV research at the university level have also been significant. Ottawa has invested over $7.6 million in university-level EV research between 2017 and 2022. Universities have had to shift their approach to research, aligning more closely with industry needs and demonstrating a return on investment.

In addition to university research, the National Research Council (NRC) conducts both commissioned work and basic research for automakers, including exploration of next-generation batteries. The NRC’s Industrial Research Assistance Program also provides support for small- and midsize enterprises engaged in product development.

To remain competitive in the evolving EV market, industry participants have called for streamlined permitting and approvals from the government. Industry focus is expanding to include cleaner battery production methods, better recycling practices, and the recovery of valuable battery materials such as lithium, cobalt, and manganese.

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