This Week in Automotive — Ottawa (#29, 2026)
Ottawa commits $70M to Quebec EV battery supply chain; Federal funds expand national EV charging; Southern Ontario export support for auto sector; Atlantic manufacturers receive automation investments; Alberta automotive insurance regulations issued.
July 26, 2026 to August 01, 2026
This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news for car manufacturers, parts suppliers, car dealers, rental companies, and importers/exporters in the automotive industry. Once a week, we break down the most important updates in this space in under five minutes.
Want to track the upstream and downstream forces affecting Automotive? Don’t miss this week’s updates in Manufacturing and Oil & Gas. Also consider subscribing to our Automotive - Washington edition covering critical GR news south of the border.
📋 In This Week's Newsletter
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 💬 Government Consultations
• 📚 What We're Reading This Week
Federal Government News
Government of Canada invests $70 million to strengthen the EV battery supply chain in Quebec
On July 30, the Honourable Mélanie Joly, Minister of Industry, announced up to $70 million in funding from the Strategic Response Fund to support Volta Energy Solutions Canada Inc. in establishing an advanced copper foil manufacturing facility in Granby, Quebec. The federal contribution forms part of a $760.9 million project, projected to create 260 jobs and provide an annual output of 25,000 tonnes of copper foil for EV battery cells, ramping up to 63,000 tonnes over time. This processing plant will supply materials vital for energy storage systems and electric vehicles. The facility is set to begin production in 2027, aiming to reinforce domestic battery supply and Canada’s position in the global battery supply chain. The funding extends Canada's ongoing automotive sector strategy, supporting export-oriented manufacturers as they adapt to rapid change in electrification and supply chain integration.
Sources: www.canada.ca

Federal government invests in electric vehicle infrastructure and education across Canada
Minister Julie Dabrusin, on July 30 in Burnaby, British Columbia, announced $10.9 million in funding for 22 electric vehicle infrastructure and education projects nationwide. The Zero Emission Vehicle Infrastructure Program is being channeled to install nearly 400 new charging ports through nine projects, with additional funds allocated to 13 educational initiatives aimed at improving public familiarity with EV charging. British Columbia alone now hosts over 8,900 public charging ports, a growth of 87% since 2023. The investments build on the National Electricity Strategy, targeting industry competitiveness and the expansion of clean energy options for the automotive sector. Stakeholders in vehicle distribution, component supply, charging networks, and related trades may experience new opportunities as the network grows.
Sources: www.canada.ca
Breakdown: Recipients of latest federal EV infrastructure and education funding
Hydro-Québec will install 100 Level 3 chargers using $5 million in support; Ivy Charging Network and QuantumEV Inc. will bring 44 and 74 chargers to Ontario, respectively. CapEV Group, AUX Energy, Pomas Farms, and others are deploying chargers in British Columbia, Ontario, and the Northwest Territories. Educational funding is being distributed to organizations including the Canadian Association of Fire Chiefs and Electric Mobility Canada. Focus areas include fire safety, grid integration, fleet management, and deployment in multi-unit residential buildings. This series of projects is expected to improve the accessibility of public charging, reduce charging wait times, and generate resources for stakeholder education on installation, operation, and safety.
Sources: www.canada.ca
Federal investment helps Dartmouth manufacturer produce critical parts faster
A repayable federal contribution of $875,500 has been provided to Velocity Machining & Welding Inc., announced July 28 by MP Braedon Clark on behalf of the Atlantic Canada Opportunities Agency. This funding will be used for advanced automated machining equipment at Velocity’s Dartmouth, Nova Scotia facility. The new equipment is expected to speed industrial component production for supply chains in aerospace, marine, and transportation industries. Increased automation aims to mitigate skilled labour shortages and enhance supply chain resiliency for manufacturers serving critical vehicle sectors.
Sources: www.canada.ca
Government of Canada support to help Ontario businesses strengthen trade resilience and expand into new markets
FedDev Ontario is providing nearly $2.5 million to the Toronto Business Development Centre to launch the GoEU program—a $5 million initiative co-funded by the Government of Ontario. Announced July 30 in Toronto, GoEU will equip Ontario companies, including those within automotive and steel supply chains, to diversify their exports and gain access to European markets in response to tariff pressures. The program offers readiness assessments, advisory services, and access to European market expertise and prioritizes firms seeking to mitigate trade risks through new partnerships. The project supports auto and parts manufacturers as part of Budget 2025’s target to double non-U.S. exports.
Sources: www.canada.ca
Federal Economic Development Agency for Southern Ontario supports Markham’s economic development activities
On July 29, the Honourable Evan Solomon announced a $3.5 million investment for the City of Markham to maximize economic opportunities related to hosting the Ontario Honda Dealers Indy for five years, beginning August 2026. The funding, delivered through FedDev Ontario, will support upgrades to municipal roads, race track infrastructure, and event facilities. The project is expected to drive local economic growth, increase demand for automotive services, and bolster tourism, with flow-through effects for surrounding industries.
Sources: www.canada.ca
FedDev Ontario invests over $11.3 million in 13 Niagara Region businesses
On July 28, the Government of Canada announced $11.3 million in federal contributions to 13 Niagara Region manufacturing businesses affected by recent trade disruptions. Firms receiving support include those active in steel processing, transportation equipment, and vehicle-related components. Projects will fund technology upgrades and infrastructure improvements, aiming at higher efficiency and strengthened supply chain capacity. The announcement targets improved market responsiveness for the region’s automotive and industrial sectors.
Sources: www.canada.ca
Regional Tariff Response Initiative supports modernization of a New Brunswick steel fabricator
Ocean Steel & Construction Ltd. of Saint John, New Brunswick will receive $750,000 via the Regional Tariff Response Initiative, as announced July 29. Funding facilitates the installation of digital CNC equipment, automated plate handlers, and robotic welding. The modernization aims to improve efficiency, enhance competitiveness, and help navigate steel-related tariffs. These upgrades support the automotive supply chain and will allow the firm to pursue new market opportunities amid shifts in international markets.
Sources: www.canada.ca
Provincial Government News
Alberta reduces recycling fees for automotive fluid containers
Effective August 2026, Alberta will move windshield washer fluid containers into the used oil recycling program, reducing eco fees for a four-litre jug from $2.20 to $0.48. The change follows a government review targeting lower consumer costs on automotive products.
Sources: www.alberta.ca
Quebec issues new heavy vehicle risk index standard
The Bureau de normalisation du Québec has published BNQ 1030-100, a standard for classifying heavy vehicles based on vision and the detection of vulnerable users. The index is positioned to facilitate safer vehicle choices among fleet and freight operators.
Sources: www.quebec.ca
Ontario starts expansion of Highway 3 for auto industry growth
Ontario has begun twinning Highway 3 in St. Thomas to support access to Volkswagen’s PowerCo EV gigafactory. The infrastructure work is expected to enhance regional supply chain and labor connectivity for the automotive sector.
Sources: news.ontario.ca
Manitoba ranked top province for removing internal trade barriers
The Canadian Federation of Independent Business awarded Manitoba an 'A' for reducing interprovincial trade barriers, recognizing government actions including a Mutual Recognition Agreement covering trucking and related auto sector movement.
Sources: news.gov.mb.ca
Ontario and Canada invest in upskilling automotive and manufacturing workers in the North
More than $7.2 million will be invested between Ontario and the federal government to train over 500 northern Ontario workers impacted by tariffs. The initiative covers skills for welding, equipment operation, and industrial mechanics, strengthening auto sector workforce resilience.
Sources: news.ontario.ca
Government Consultations
Consultation on potential due diligence and civil liability measures to fight labour exploitation in supply chains
Employment and Social Development Canada launched consultations July 27–August 21 on possible due diligence and civil liability obligations for Canadian businesses regarding labour exploitation in international supply chains.
Sources: Share your views: Measures to address forced labour and labour exploitation in global supply chains

What We're Reading This Week
- India’s capital part of aggressive electric vehicle targets in bid to curb air pollution: Coverage of New Delhi’s EV policy and implications for global urban fleet transitions.