A recent article from Automotive News Canada states that electric vehicles (EVs) made in Canada will indeed qualify for U.S. consumer tax credits under a new U.S. bill. A previous version had stated that the tax credits would only apply to vehicles made in the United States. Under the new bill, there is a $4,000 tax credit for the purchase of used electric vehicles and $7,500 for new ones. The article states that there are also EV battery provisions. For an EV to qualify for the full incentive, a portion of the critical materials in its battery must be “extracted or processed in any country with which the United States has a free trade agreement,” the proposed legislation stipulates. The materials also qualify if they are produced at a North American recycling operation. It should be noted that work is still required to move this legislation forward, but things are looking bright for Ontario, Canada. Ontario has a robust supply chain that is already deeply integrated with U.S. partners. The province also has all the critical minerals needed to build EV batteries, including nickel, cobalt, lithium and graphite. Recent announcements by Umicore, LGES/Stellantis, GM, Ford and Honda reinforce the fact that Ontario is a hub for tomorrow’s EV. Since 2019, Ontario has had ~$16B in new auto investments, including $12.5B in the EV space. ~$16B in new auto investments Including $12.5B in electric vehicle and EV battery investments Companies Investment in $B LG Energy Solution and Stellantis 5 Stellantis 3 General Motors 3 Ford 1.8 Umicore 1.5 Honda 1.4 Learn more about Ontario’s automotive industry. Read the original Automotive News Canada article by Greg Layson and David Kennedy. Bloomberg News and the Associated Press contributed to their report. Tax credits stated are in U.S. dollars. Recent automotive investments in Ontario are in Canadian dollars.
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