Is Canada’s EV Market Heading For A Boom?

Summary

• With more American EV companies investing in Canada-based facilities, the country could be closer to its goal to be a global leader in the EV movement than ever before.
• In the last six months, two major US-based automakers have announced billion-dollar investment plans in Canada -- General Motors and Ford.
• Major North American companies have also been closely following one another recently to get publicly listed.

While US President Joe Biden has upset some Canadians with his cancellation of the Keystone XL pipeline, his eagerness for green energy movement has the potential to benefit the country. Canada has been known for its efforts to lead the global transition to eco-friendly electric vehicles (EV). Now, with more American EV companies investing in Canada-based facilities, the country could be closer to the goal than ever before.

In the last six months, two major US-based automakers have announced billion-dollar investment plans in Canada. Let’s find out more about them.

Major US EV Investments in Canada

Detroit-based General Motors Company (NYSE:GM, GM:US) announced on January 15 its plans to spend about US$ 1 billion in an EV production facility in Ontario’s Ingersoll. The company said it will be manufacturing commercial electric-powered vans in this plant.

Canadian trade union Unifor has voted to approve General Motors’ plan recently, after which the construction work was promised to begin immediately so that the EV production could kickstart by November.

Ford Motor Company (NYSE:F, F:US) also plans to invest about US$ 1.2 billion in the production of battery-powered vehicles in Ontario’s, Ontario, starting 2025. The federal and provincial governments have also promised to contribute over C$ 250 million for the Michigan-based automaker’s production bid, which has also been greenlit by the members of Unifor.

Unifor President Jerry Dias had said in an address following the Ford deal that such initiatives in favor of no-emission vehicles signify Canada’s “global leadership role” in the EV movement.

How Are EV Stocks Doing?

Stocks of General Motors have climbed by nearly 22 per cent this year, while Ford stocks are up almost 20 per cent year-to-date (YTD).

Canadian EV maker GreenPower Motor Company Inc (TSXV:GPV) is one of the top trending stocks on the TMX platform emerging firms. The shares have catapulted by nearly 219 per cent in the last three months and by about 345 per cent in the last six months.

The most famous EV stock, Tesla Inc (NASDAQ:TSLA, TSLA:US), has surged momentarily last year, pushing its founder Elon Musk into the top tier of richest people on the planet. Tesla stocks have climbed about 93 per cent in the last three months.

Major North American companies have also been closely following one another recently to get publicly listed, with most of them taking the SPAC route, such as Nikola Corp and Fisker Inc.