Canada is spending more to help automakers build out electric vehicle supply chains in the country as part of its yearslong effort to attract new auto investments and compete with the U.S. EV subsidies enacted under President Joe Biden.

The tax credit, included in the government’s new 2024 budget proposal, offers manufacturers a 10% subsidy on the capital cost of buildings used in “key segments” of EV production and is designed to build on an existing tax credit Canada passed in 2023 to subsidize 30% of EV makers’ equipment costs.

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