The Globe and Mail reports in its Wednesday, March 19, edition that after the Canadian government rejected Electrovaya's 2021 funding request for a lithium-ion battery plant in Ontario, the company instead secured a site in southwestern New York and received $50.8-million (U.S.) in loans and additional state subsidies. The 137,000-square-foot plant, set to begin operations this spring, will create 250 jobs in the U.S. While maintaining a smaller facility in Mississauga with 100 employees to serve overseas markets, Electrovaya was surprised when Canada later committed billions to attract foreign EV battery plants. Why was Canada funding them but not a domestic innovator in the same field? Electrovaya chief executive officer Rajshekar DasGupta said in December: "I look at that as a bit of folly, especially since Canadian companies have received little of those types of incentives to set up and scale manufacturing here. We were feeling unloved." The Canadian government may have inadvertently benefited Electrovaya. Due to a trade war, products from its New York factory, aimed at the American market, will not face the same tariffs that would apply if the plant were in Canada, depending on the dispute's outcome.
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