Effectively, despite U.S. action, we are on our way in Canada. Over half of the original investments announced in Canada's battery supply chain are still proceeding, even if on shorter timelines or with interim plans to produce batteries for stationary storage while the North American EV market matures. Canada's investments were wisely structured, so the majority of taxpayer dollars flow only when production actually happens.
Canada was still ranked second globally for EV battery supply chain potential in 2025. Its recent moves to expand its partnerships with South Korean, German and Chinese automakers can help bring technology know-how and anchor supply chains here to increase our future competitiveness.
It's true that the momentum hasn't been felt in the domestic EV market in the past year. Due to a series of policy choices, we were the only major car market to see EV sales decline in 2025, but we welcome Canada's new auto strategy, which is making the right moves to really start addressing this through support for upfront costs, a focus on affordability, investments in charging, and a strategic approach to trade and investment attraction. We hope to see a correction in 2026, because Canadians are not an exception to this global trend. Our polling shows that nearly half still lean toward an EV for their next vehicle, with support rising among younger Canadians or those who even know a single other person who owns an EV.
Canadians also recognize that EVs save money. Our 2026 total cost of ownership analysis finds that in comparable ICE-EV pairings, EVs save about $2,000 to $3,000 per year. That means up to $30,000 over a 10-year lifespan of a vehicle.
While many more North American automakers have been recalibrating strategies amidst a changing policy environment, many do focus on EVs over the longer term, which suggests they still see the future of auto as electric and are just adjusting scale and timing.
With this in mind, Canada is headed in the right direction, but we can't stop yet. There are three key remaining actions. I would say, in addition, that I support my colleague's suggestion around the adoption of safety standards from other jurisdictions as an additional means to increase the availability and supply of vehicles in Canada.
Here are my three.
Finalize strong tailpipe standards to help power the domestic market and fuel investment. Canada has now committed to 75% by 2035 and we need regulations to come into force by 2027 to really set certainty in the market. This kind of regulation doesn't mandate EV adoption, but it gives automakers flexibility in early years while requiring more EV sales as the policy ramps up. Similar regulations exist in the EU, the U.K., China, Japan and most major markets. Canada needs to have this kind of regulation to keep pace. Design really matters here because Canada's current passenger vehicle regulations have only reduced emissions by 1% since they came into force nearly 15 years ago, so getting this next iteration right is going to be critical.
We also need to recapitalize the zero-emissions vehicle infrastructure program. Recent investments in the Canada Infrastructure Bank are important, but then we need complements to help direct funding to places where the math may not pencil out yet. Rural and underserved communities and apartment residents should not be locked out of EV ownership.
Finally, Canada can strengthen the midstream of its battery supply chain. Using trade deals and policy tools, Canada could attract foreign direct investment in battery or vehicle production with provisions requiring collaboration with Canadian critical minerals producers and timelines for Canadian content. At the same time, we should protect IP in joint ventures, including through a national IP strategy, and use public procurement to grow markets and support innovation.
The EV future in Canada is bright. I look forward to responding to your questions.