Canada is actively courting a Chinese-Canadian joint venture to build electric vehicles, Industry Minister Mélanie Joly announced. The aim is to manufacture EVs for export globally, leveraging existing Canadian auto parts companies like Magna International and Martinrea International. This strategic shift reflects a desire to capitalize on the growing EV market and foster economic growth.

This initiative represents a change in Canada's previous stance, which had expressed concerns about Chinese manufacturing subsidies and vehicle technology security. Joly is optimistic about a collaborative approach. She cited the example of Honda's affordable Civic production in Ontario to demonstrate the potential for competitive, jointly-created EVs, even with higher labor costs.

Joly met with BYD Co. Ltd., the world's largest EV producer, and Chery Automobile Co. during a recent trip to China, signaling serious intent. The move aligns with Prime Minister Mark Carney's trade agreement with China, including the removal of duties on agricultural products and the exemption of Chinese-built EVs.

Canada is also pursuing automotive investments from South Korea, targeting companies like Hyundai and Kia, which sell extensively in Canada. The government's goal is to create jobs and attract investment in the auto sector, particularly in Quebec, which is a key market for Kia. This strategy aims to strengthen Canada's position in the global EV market.