While Quebec could spend more than $1 billion building the Northvolt factorywe learn that the gigantic $28.2 billion in subsidies given to Stellantis-LGES and Volkswagen’s mega-battery factories in Ontario will not be profitable for the next 20 years.
At least that is the conclusion reached by a report by the Parliamentary Budget Officer (DPB) published this Tuesday in Ottawa.
- Listen to Yves Daoust’s economics section above
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:
“The PBO estimates that federal and provincial government revenue from the Stellantis-LGES and Volkswagen EV battery production plants will be equal to the total amount of production subsidies ($28.2 billion) in the period 2024 to 2043 – a period in which the pause will be achieved .” “Just twenty years,” he summarized in a succinct 19-page analysis.
Based on various scenarios, the PBO estimates that public subsidies for electric vehicle (EV) battery production facilities will be equal for the governments of Canada and Ontario in just twenty years.
Click here to read the report.
-More details to follow.