EN FR

Ottawa should pull the plug on EV corporate welfare

Author: 2025/09/03

OTTAWA, ON: The Canadian Taxpayers Federation is calling on the federal government to cut its corporate welfare for Northvolt’s electric vehicle battery plant following news that the Quebec government is pulling its funding.

“The federal government should follow Quebec’s lead and pull the plug on this risky corporate welfare,” said Franco Terrazzano, CTF Federal Director. “The Carney government can save taxpayers billions if it stops the flow of cash to multinational corporations now.”

The government of Quebec is “pulling the plug on a $7-billion electric-vehicle battery project near Montreal and trying to recoup some of its investment,” the Canadian Press reported

The federal government announced more than $4 billion in subsidies to Northvolt’s electric-vehicle battery project, while the Quebec government announced more than $2 billion.

Of the federal corporate welfare, about $3.5 billion is production subsidies while $1.3 billion is for “construction and other support,” according to the Parliamentary Budget Officer. The federal government announced subsidies to help build the first phase of the plant but “hasn’t yet disbursed any funds,” according to the Globe and Mail.

The federal government put taxpayers on the hook for up to $31.4 billion for subsidies for battery factories and the electric vehicle supply chain, according to the PBO.

“The government is broke and it should not give taxpayers’ money to corporations,” Terrazzano said. “The government should be growing the economy by cutting taxes and red tape, not by making risky bets with taxpayers’ money.”


A Note for our Readers:

Is Canada Off Track?

Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.

Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?

You can tell us what you think by filling out the survey

Join now to get the Taxpayer newsletter

Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

Join now to get the Taxpayer newsletter

Hey, it’s Franco.

Did you know that you can get the inside scoop right from my notebook each week? I’ll share hilarious and infuriating stories the media usually misses with you every week so you can hold politicians accountable.

You can sign up for the Taxpayer Update Newsletter now

Looks good!
Please enter a valid email address

We take data security and privacy seriously. Your information will be kept safe.

<