Ottawa plans to spend $21 billion over five years on clean technology in one of the main platforms affecting the mining industry contained in Tuesday’s annual federal budget.
Finance Minister Chrystia Freeland said the amount, including a 30% investment tax credit to boost clean-tech manufacturing, especially in the electric vehicle (EV) supply chain, could expand to $80 billion by 2034.
“We are going to make Canada a reliable supplier of clean energy to the world,” Freeland said in Parliament. “And, from critical minerals to electric vehicles, we are going to ensure that Canadian workers mine, and process, and build, and sell the goods and the resources that our allies need.”
The tax credit for capital investments in manufacturing equipment will apply to purchases of equipment used to extract and process critical minerals used in EVs and to purchase equipment used in manufacturing along the entire EV supply chain, including for batteries.
Pierre Gratton, president and CEO of the Canadian Mining Association, welcomed the budget initiatives. '