Provincial government wants domestic companies to play global roles in electric and autonomous vehicles.
The Ontario government and private partners are investing over $56 million in “homegrown” automotive and mobility companies (such as those focused on autonomous and connected cars) to both bolster the provincial supply chain and help domestic companies reach foreign markets.
The contribution includes almost $39 million from the private sector, with the provincially funded Ontario Vehicle Innovation Network (OVIN) providing over $17 million. The investments target 30 small- and medium-sized businesses. BetaKit has asked for more details regarding the private investments.
“Together, we are ensuring that Ontario will continue to be a global automotive and mobility leader for decades to come.”
Raed Kadri,
OVIN
Most of the companies are in the Greater Toronto Area (GTA) and target fields like electric vehicle (EV) charging infrastructure, connected car systems, and autonomous car technology.
Among the recipients are Waterloo-based Dejero, which is working on a rugged 5G connectivity solution, Kitchener’s GeoMate is creating high-resolution maps for autonomous city driving, while Toronto’s e-Zinc is partnering with Toyota on long-duration energy storage for purposes like powering EV charging stations.
Victor Fedeli, Ontario’s Minister of Economic Development, Job Creation and Trade, claimed the funding was “protecting the future” of the province’s automotive industry by ensuring that future cars are made in Ontario.
OVIN head Raed Kadri, in turn, claimed Ontario was in the “driver’s seat” for these sectors and that the money would ensure long-term success.
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“Together, we are ensuring that Ontario will continue to be a global automotive and mobility leader for decades to come,” Kadri said.
The provincial government’s Ontario Centre of Innovation (OCI) leads OVIN and sees it as a cornerstone of the Driving Prosperity initiative, which aims to spur work on “safer, cleaner, and more efficient” transportation.” While the province has invested billions of dollars in transit infrastructure in the past five years, and in 2024 put forward legislation to streamline investments in the space, transportation startups have complained about overly cautious business and regulatory environments that they claim are holding them back.
The push for more domestic innovation comes in light of United States (US) President Donald Trump’s trade war with Canada. The automotive sector plays a key role when numerous major manufacturers have factories and offices in Canada, and there are concerns related tariffs (such as a 25-percent tariff on auto parts) will raise prices and discourage Canadian production. The US Commerce Department offered a temporary reprieve in late April through rebates for companies that finish production in the US.
Feature image courtesy of Osarugue Igbinoba on Unsplash.