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Recently, Canada officially released a new strategy for the electric vehicle (EV) sector, explicitly designating China as a "key partner." A series of favorable policies, including tariff reductions and quota liberalization, have been implemented, marking a shift in Sino-Canadian EV cooperation from previous trade barriers to a new stage of mutually beneficial and collaborative development.
Image Source: 699pic.com
In early February, the Canadian Prime Minister officially announced the new EV strategy, with several core measures focusing on Sino-Canadian cooperation, marking a significant milestone in deepening collaboration between the two sides. The quotas will be increased proportionally over the next five years, reserving space for a continued recovery in Sino-Canadian EV trade. Meanwhile, Canada has restarted its electric vehicle purchase subsidy program, planning to invest special funds over five years to focus on supporting battery manufacturing, charging infrastructure construction, and upgrading the local supply chain, providing solid policy and financial guarantees for the implementation of Sino-Canadian cooperation projects.
This deepening of Sino-Canadian electric vehicle cooperation stems from the precise complementarity of resources and technologies between the two sides, and is also an important measure for Canada's strategic shift and pursuit of export diversification. For a long time, Canada has relied on the United States for approximately 90% of its vehicle exports, making it significantly affected by US trade policies. China, as the world's largest producer and exporter of electric vehicles, controls more than 70% of global lithium battery production capacity and has outstanding advantages in areas such as low-temperature battery technology, cost control, and vehicle manufacturing.
The Canadian Prime Minister has explicitly stated that China's electric vehicles possess advantages in cost-effectiveness, energy efficiency, and innovation, making them world-leading. Canada aims to learn from China and engage in in-depth cooperation to jointly build an electric vehicle supply chain. Furthermore, Canada seeks to leverage the technology and production capacity of Chinese companies to upgrade its domestic electric vehicle manufacturing capabilities, connecting with the global market as "Made in Canada," circumventing some trade barriers, and achieving a breakthrough development for its domestic automotive industry.
In terms of practical implementation, the first batch of projects between China and Canada has been launched, with vehicle exports and localization joint ventures progressing in parallel, showing a positive trend of multi-pronged development. In the field of vehicle exports, BYD has completed the relevant registrations with Transport Canada, obtaining approval to export pure electric models such as the Dolphin, Seal, and Atto 3 from its two major production bases in Shenzhen and Xi'an to Canada. These models are adapted to Canada's harsh climate and fully meet Canada's stringent requirements for vehicle cold-weather performance.
Previously, during her visit to China, the Canadian Industry Minister met with representatives from BYD, Chery, and other Chinese automakers to discuss localized production, supply chain collaboration, and other matters, assessing the feasibility of joint venture manufacturing and planning to create a globally competitive Sino-Canadian joint venture electric vehicle brand. In terms of supply chain collaboration, cooperation between China and Canada continues to deepen. CATL has signed a cooperation agreement with Canadian lithium miner Patriot to jointly build a 50,000-ton-per-year lithium hydroxide refinery, scheduled to officially commence production in 2026.
Looking back, after Canada imposed a 100% tariff on Chinese-made electric vehicles in October 2024, China's electric vehicle exports to Canada experienced a precipitous decline. This easing of tariffs and the removal of quotas are expected to drive a rapid recovery in the Canadian electric vehicle market, while simultaneously opening up new overseas growth markets for Chinese electric vehicles.
Industry analysts point out that the warming cooperation between China and Canada in the electric vehicle sector is an important manifestation of the optimization of the global new energy vehicle industry landscape, and an inevitable choice for both countries to adapt to the trend of green transformation and achieve mutual benefit and win-win results.