Report

Costing Support for EV Battery Manufacturing

Nov 17, 2023

This report estimates the total cost of federal and provincial government support for EV battery manufacturing announced to date that will be provided to Northvolt, Volkswagen and Stellantis-LGES. The report also provides estimates of the break-even timelines for the announced production subsidies.

Supplementary Data (xlsx)

Highlights

PBO estimates the total cost of government support for EV battery manufacturing by Northvolt, Volkswagen and Stellantis-LGES to be $43.6 billion over 2022-23 to 2032 33—$5.8 billion higher than the announced costs of $37.7 billion.
The federal government and the government of Quebec recently announced a production subsidy of up to $4.6 billion for Northvolt. The federal government used PBO’s methodology to estimate a break-even timeline of 9 years based on full production in every year.
Based on Northvolt’s projected annual production schedule, PBO estimates a break-even timeline of 11 years for the $4.6 billion production subsidy.
PBO estimates a break-even timeline of 15 years for the $13.2 billion production subsidy announced for Volkswagen, and 23 years for the $15.0 billion in production subsidies for Stellantis-LGES—consistent with our previous estimate (of 20 years) based on their combined production schedules.