Investing.com — Canada is actively pursuing a Chinese-Canadian auto plant that would produce electric vehicles for global export, Industry Minister Mélanie Joly revealed Friday.
Joly suggested Canadian auto parts companies like Magna International Inc., Linamar Corp. and Martinrea International Inc., which already operate in China, could join forces with Chinese EV manufacturers in a joint-venture assembly plant on Canadian soil.
“We believe that these great Canadian champions can partner with Chinese EV companies to make a Canadian-Chinese car to export it around the world,” Joly told Bloomberg News.
This approach marks a shift for the Canadian government, which previously accused China of unfairly subsidizing its manufacturers and raised security concerns about Chinese vehicle technology.
“We can find a way to have software in the car that will address the security concerns,” Joly explained, adding that Canada could ensure labor standards meet Canadian expectations while creating local supply chains.
The minister disclosed “active conversations” about how Canadian firms might complement Chinese auto investments, including with Ottawa-based software developer QNX, owned by BlackBerry Ltd. During a recent China trip, Joly met with BYD Co. Ltd., the world's largest EV producer, and Chery Automobile Co.
Despite higher Canadian labor costs compared to China, Joly believes a jointly created EV could remain globally competitive, citing Honda Motor Co.'s affordable Civic production in Ontario as an example.
The initiative aligns with Prime Minister Mark Carney's trade agreement with Chinese President Xi Jinping. In January, China began removing duties on Canadian agricultural products while Canada exempted up to 49,000 Chinese-built EVs annually from a 100% tariff imposed in 2024.
Canada is also pursuing auto investments from other nations, particularly South Korea. The governments recently signed a non-binding agreement to advance Korean automotive presence in Canada, targeting Hyundai Motor Co. and Kia Corp., which sell extensively in Canada but manufacture elsewhere.
“Quebec is the biggest Kia market in the world. So we're having conversations. Our goal is to create jobs and attract investment in the auto sector,” Joly said.
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