A new report from the federal Parliamentary Budget Officer shows it will take until the 2040’s for the Government’s of Canada and Ontario to break-even on the subsidies they provided to two companies to build EV battery plants in Ontario.
Yves Giroux states the estimate the tax revenues generated from the Stellantis-LGES and Volkswagen EV battery manufacturing plants between 2024 and 2043 will be equal the the total amount of production subsidies.
“That is, the break-even timeline for the $28.2 billion in production subsidies announced for Stellantis-LGES and Volkswagen is estimated to be twenty years, significantly longer than the Government’s estimate of a payback within five years for Volkswagen.”
There is a cost share agreement in place between Canada and Ontario, which will see the federal government cover 2/3’s, or $18.8 billion, and Ontario now covering the remaining $9.4 billion.
This report follows up one released in June, which since its publication, both Canada and Ontario announced new production subsidies for Sellantis-LG.
