The automotive industry has come a long way and is now undergoing important development as hybrid and electric cars are growing in popularity. These days, we hear more and more about zero-emission vehicles, and sustainable transportation. Technology is advancing rapidly, and automotive manufacturers must ensure that they are at the forefront in order to meet consumer needs and environmental standards.
Among the different emerging technologies, there are two main types of electric vehicles (EVs). There’s the Battery Electric Vehicle (BEV) that is fully propelled by the electrical energy stored inside, and they need to be recharged through external sources of electricity and there’s the Plug-in Hybrid Electric Vehicle (PHEV) which has a battery and an electric motor. In addition, there are also different types of connected and autonomous vehicles (C/Avs). Among them, we can mention the conditionally autonomous vehicles where vehicles may drive themselves most of the time, without any human interaction.
The Canadian Government has set a mandatory target for all new light-duty cars and passenger trucks to be zero emission by 2035 given the fact that transportation accounts for approximately 25% of Canada’s greenhouse gas emissions (GHG), of which almost half is from passenger trucks and light trucks. To achieve this goal, the government has developed several programs to help automotive manufacturers have the necessary funds to perform research, expand, or to develop and launch innovative products on the market. In this article, we will review various programs that automotive manufacturers and other organizations can leverage to address challenges.
Organizations can get funding for capital investments. The Advanced Manufacturing and Innovation Competitiveness (AMIC) stream from the Government of Ontario, will provide advanced manufacturing companies, with a focus on small and medium-sized businesses, investments in capital equipment, technology adoption, and skills development. This fund supports businesses from various sectors including automotive, aerospace, life sciences, information and communications technology (ICT), etc.
This fund provides access to several sources of financing. In fact, a business can receive an interest-free loan of up to 15% to a maximum of 5 million dollars during the project period to a maximum of 4 years. If the organization can achieve its investment and job or upskilling targets, up to 30% of the loan, to a maximum of $ 500,000, may be forgiven. Small companies in rural communities may be eligible to receive a grant of up to $500,000, up to a maximum of 15%. Strategic projects that are foreign direct investment or from companies competing against other jurisdictions or companies with significant reshoring projects are also eligible to receive a grant of up to $ 1.5 million, up to a maximum of 15%. In order to be eligible, businesses need to have at least three years of operations, have at least 10 employees, commit to creating at least five new jobs and / or upskilled current jobs, invest at least $ 500,000 in their project and be located in Ontario.
In addition, there is also the Ontario Vehicle Innovation Network (OVIN) that offers programs to support research and development, talent development, technology acceleration, business and technical supports and testing and demonstration. One of the programs that OVIN offers is called R&D Partnership Fund – Connected and Autonomous Vehicle (C/AV) and Smart Mobility. This program has 2 streams.
Both streams support projects that focus on development, testing, validation and demonstration of connected and autonomous vehicle (C/AV) and smart mobility technologies in several priority areas such as mass light vehicles, heavy duty vehicles, transportation infrastructure, Intelligent Transportation Systems (ITS), and Transit-supportive systems and vehicles. The projects should be at Technology Readiness Level (TRL) 3 to 9 in order to be eligible. Organizations that are eligible to apply for funding are small and medium sized businesses (SME) that operate in Ontario. Each project must have at least one partner and it can be another SME, a national or multinational enterprises, municipalities, non-profit organizations representing the industry, indigenous communities, Crown Corporations and transit authorities.
Under the first stream, projects will receive up to $100,000 in funding over a maximum of 12 months for a total budget of up to $300,000. To apply to this stream, an organization will need to send their expression of intent (EOI) and a Business Development Manager will get in touch with the organization to discuss the opportunity and provide assistance. Under the second stream, projects will receive up to $1 million in funding over a maximum of 24 months for a total budget of $3 million. The application process for the second stream requires two steps. First, the organization will need to send an expression of interest thereafter, submit a full proposal.
One of the reasons some people don’t buy electric vehicles is that it may be challenging to find a charging station, which would make commuting difficult. The next program addresses this need. The Zero Emission Vehicle Infrastructure Program (ZEVIP) is from Natural Resources Canada. Funded through budget 2019, and the 2020 Fall Economic Statement, this fund is now a $ 680 million fund ending in 2027. The goal of this program is to address the lack of charging and refueling stations in Canada, which is one of the principal obstacles to the adoption of zero-emission vehicles (ZEV), by increasing the availability of
hydrogen charging and refueling opportunities for Canadians.
This funding is a cost-sharing contribution and eligible organizations can receive up to 50% of the total project costs, up to a maximum of five million dollars per project, and up to two million per project for delivery organizations. The new request for proposal with a deadline on August 11, 2022, is targeting multiple infrastructure streams such as:
- Public spaces: The program will support the installation of electric vehicle charging infrastructure in parking lots designated for public use. Examples of public spaces are services stations, retail, libraries, medical offices, etc.
- On-street: On-street charging is known as public charging infrastructure and is operated by local governments.
- Workplaces: The program will support the installation of electric vehicle charging infrastructure at workplaces and they must be primarily used by the employees.
- Multi-Unit Residential Buildings (MURBs): this is for parking facility where people live. For the intent of the program, the building must have a common entrance and be a minimum of three storeys or have a footprint greater than 600m² to be considered as a MURB.
- Commercial and Public Fleets (on-road): These fleets are used to support organizational or business operations and activities. On-road commercial and public fleets include light, medium or heavy-duty vehicles, cabs, last mile delivery vehicles or municipal utility vehicles, etc.
The Canadian government funding landscape offers programs to help manufacturing companies reduce the costs of projects, improve production, support research and development activities as well as hiring and training to develop employee skillsets.
