Canada Unveils $7B EV Strategy with China Partnership, Aims for 90% EV Adoption by 2040

Canadian Prime Minister Mark Carney on Thursday unveiled a comprehensive national strategy to accelerate electric vehicle adoption, positioning Canada as a major player in the global EV transition. The ambitious plan includes C$2.3 billion ($1.7 billion) in consumer subsidies, C$3 billion ($2.2 billion) for automotive industry transformation, and C$1.5 billion ($1.1 billion) for charging infrastructure expansion.

The strategy sets an aggressive target of achieving 90% EV adoption by 2040, supported by stricter greenhouse gas emission standards and tax incentives designed to encourage corporate investment in clean technologies. A key component involves strengthening cooperation with China to promote domestic EV production and exports, signaling Canada's intent to leverage global supply chains while building local manufacturing capacity.

This multi-billion dollar investment represents one of North America's most comprehensive approaches to EV market development, combining consumer affordability programs with industrial policy to create a complete ecosystem for electric mobility. The government's commitment to both domestic production and international partnerships reflects the complex geopolitical and economic considerations shaping the global transition to electric vehicles.

The strategy arrives as countries worldwide compete to establish leadership in the EV sector, with Canada betting on a balanced approach that combines government support, infrastructure development, and strategic international cooperation to secure its position in the emerging electric economy.