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Electrovaya Inc (2)
Symbol ELVA
Shares Issued 40,106,915
Close 2025-05-09 C$ 3.81
Market Cap C$ 152,807,346
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Globe says EV strategy does Electrovaya no favours

2025-05-12 09:32 ET - In the News

The Globe and Mail reports in its Monday edition that Canada's automotive and electric vehicle manufacturing strategy has faltered. The Globe's guest columnist Jim Hinton writes that the federal and Quebec governments invested $4.6-billion in Northvolt, a Swedish EV battery manufacturer, which recently declared bankruptcy. Quebec's $270-million investment in Northvolt's parent company is now considered lost. The head of Canada's Building Trades Unions criticized the subsidizing of foreign workers at the Windsor EV battery plant as an affront to Canadian taxpayers. Overall, Canada's $57-billion EV strategy seems more politically motivated than economically viable. However, it does offer important lessons for future economic and security strategies in the current global landscape. Despite claims of job creation, many new positions are just reshuffles from domestic industries. Today, EV and automotive factories primarily use automation and robotics over workers. Foreign EV firms like Volkswagen and Stellantis do not pay taxes on financing from Canadian taxpayers, while Canadian firms do and receive no subsidies. This punishes smaller Canadian companies, like Electrovaya, encouraging them to grow in the U.S. instead.

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