Ottawa admits committing over $3.3 billion to electric vehicle manufacturing — including tens of millions to bankrupt Lion Electric
Order Paper response reveals massive subsidies to EV firms, with failed companies now on the taxpayer tab.
The Liberal government has confirmed it has committed more than $3.3 billion in taxpayer funding to electric vehicle manufacturing projects in Canada, including tens of millions of dollars to companies that have since collapsed.
The disclosure appears in a written response to an Order Paper Question from Conservative MP Dalwinder Gill (Calgary McKnight).
According to the response from Innovation, Science and Economic Development Canada, $3.386 billion has been committed since 2016, with $1.41 billion already disbursed through federal programs such as the Strategic Innovation Fund.
Among the recipients is Lion Electric, which has since entered bankruptcy protection. Ottawa committed $50 million to the company and has already paid out nearly $32 million to support a battery assembly plant and “centre of expertise” in Quebec.
Other heavily subsidized firms include:
- Stellantis – $529 million committed, $222 million disbursed
- NextStar Energy (LG–Stellantis battery plant) – $500 million committed, $491 million disbursed
- General Motors – $259 million committed, $242 million disbursed
- Honda Canada – $132 million committed, $90 million disbursed
- Ford – $295 million committed, $34 million disbursed
- PowerCo (Volkswagen) – $700 million committed, $4.5 million disbursed
- Umicore – $551 million committed, $57 million disbursed
Most of the funding went to projects in Ontario and Quebec for vehicle assembly, battery plants and critical-minerals processing.
The Order Paper response shows that many of the contributions are non-repayable, meaning taxpayers will not recover the money if the projects fail. Some agreements include job-creation requirements, while others contain repayment provisions that are not publicly disclosed.
Several projects list no public production capacity, despite receiving hundreds of millions of dollars in subsidies.
The government says the spending is meant to support Canada’s transition to electric vehicles and build a domestic battery supply chain. Critics say the disclosures confirm Ottawa is gambling billions of public dollars on politically favoured corporations — and in at least one case, backing a company that has already gone bust.
The Order Paper response provides the clearest accounting yet of Ottawa’s EV manufacturing subsidies, highlighting both the scale of public spending and the financial risk now borne by taxpayers.
Sheila Gunn Reid
Chief Reporter
Sheila Gunn Reid is the Alberta Bureau Chief for Rebel News and host of the weekly The Gunn Show with Sheila Gunn Reid. She's a mother of three, conservative activist, and the author of best-selling books including Stop Notley.
COMMENTS
-
Bernhard Jatzeck commented 2026-01-27 22:10:56 -0500It’s gonna be fun when all those Chinese EVs are unloaded in Vancouver’s harbour…..
It’s hard to believe that the Liberals are the same political party that initiated the Avro Arrow. -
Bruce Atchison commented 2026-01-27 21:30:13 -0500All that money could have built three hospitals and staffed them for years. This is why I hold Liberal boomer voters responsible for the continued wast.
