Industry and Technology Committee on May 4th, 2026

[The Chair, Liberal, Ben Carr]

Good afternoon, everyone.

I hope you all had a good weekend at home, or wherever you were in the country.

Welcome to the Standing Committee on Industry and Technology. It's nice to have everybody around the table this afternoon.

Some time ago, we invited Minister Joly to appear. She is joining us today. She is accompanied by Mr. Vincent, from the Department of Industry.

They are here to answer questions in relation to a study we've been undertaking.

Minister Joly and Monsieur Vincent will be here for the first hour, followed by the conclusion of witness testimony for the final meeting of our EV study.

Minister, you have the floor.

[Mélanie Joly, Liberal, Minister of Industry]

Thank you, Mr. Chair.

Good afternoon, everyone.

I am happy to see you.

Canada has always been a nation of builders. For 158 years, our auto sector has done more than build cars. It has built communities, livelihoods and dreams. Behind every vehicle rolling off our assembly lines are Canadian workers with extraordinary skills, families whose futures are tied to good jobs, and towns that take pride in knowing the world relies on the quality of what we create.

Today, that sector faces challenges, but for 158 years, Canada's auto sector has met every challenge with determination and heart. We have stood strong, protecting our people, supporting our families and ensuring that our communities thrive. That is what makes us who we are. Make no mistake: We're fighting for Canadian workers.

This is a defining moment for our country. The question before us is clear: How do we protect what we have built while positioning ourselves to lead in what comes next? Our answer is simple. We are building Canada by standing up for Canadian workers, by investing in innovation and by ensuring that the vehicles of the future are designed, engineered and built right here at home. We're not just preserving a legacy. We're strengthening it for generations to come.

We believe in ambition. We believe that Canada can attract global investment, strengthen our industrial base, and assume a leading role in the transition to a stronger, more competitive economy.

Above all, we believe that Canada doesn't simply react to change—it shapes it. That is why we launched Canada's new automotive strategy earlier this year.

The strategy secures investments, strengthens supply chains, and ensures that Canada remains a global leader in advanced automotive manufacturing. Our automotive strategy is already delivering results.

Indeed, there are already results following our auto strategy.

In February, we announced almost $85 million for 122 projects to install more than 8,000 electric vehicle chargers across Canada through the zero emission vehicle infrastructure program.

In March, Premier Ford and I opened the NextStar battery plant in Windsor, Ontario, a world-class facility that will create up to 2,500 good-paying jobs.

In April, we announced a $23-million investment for Siemens Canada to scale up its global AI manufacturing technologies research and development centre for battery production right here in Oakville, in Canada. This investment will maintain 3,300 jobs in Canada and also create 90 new full-time jobs.

Today, Parliamentary Secretary Rochefort announced a $20-million investment in Electra Battery Materials Corporation to expand the production capacity in its existing refinery in Temiskaming Shores, Ontario, to produce battery-grade cobalt sulphate. This facility will be North America's first cobalt sulphate refinery. It will deliver results under our auto strategy by strengthening Canada's critical minerals supply chain and by advancing our leadership in electric vehicle battery production. It will create and maintain more than 160 jobs, including 60 full-time jobs for Canadians in northern Ontario.

Together, these investments demonstrate that our auto strategy is not only theory. It is creating real jobs in communities across the country.

In this context, we must also be clear about the immediate challenges facing our workers and our communities, particularly those working for General Motors. GM's decision in October to end production in Ingersoll has created real uncertainty for auto workers and their families. Of course, we welcome GM's recent investment of $691 million in its St. Catharines propulsion plant. This is a positive step for Canada's auto sector.

At the same time, our message has been clear: We want to see CAMI Assembly in Ingersoll return to full production. We're working closely with the union, the province and industry partners to ensure a clear path forward to bring production back to Ingersoll. We remain confident in a positive resolution.

In the meantime, we will preserve all available options, maintain a firm and principled approach, and continue to engage constructively. As part of this process, we have initiated a 30-day period under the formal dispute resolution mechanism.

Our domestic automotive industry is a cornerstone of our economy. It directly supports over 125,000 jobs, as well as hundreds of thousands more in its supply chain, which includes both large companies and small and medium-sized enterprises, or SMEs. It contributes nearly $17 billion annually to our gross domestic product, or GDP.

We've been clear: If you invest in Canada and create good jobs here, our government will be your strongest partner. However, if you make promises and then walk away, you will be held accountable. It's about defending Canada's place as a leader in advanced auto manufacturing, not accepting a race to the bottom.

Workers' livelihoods are not bargaining chips for corporate leverage or political games. These are real families and real paycheques with real communities that depend on them.

Meanwhile, the process to protect auto workers in Brampton and hold Stellantis to account is under way. This is why we're working with the Government of Ontario and Unifor to defend all of these jobs and hold Stellantis to account.

To the auto workers across this country, we see you, we hear you and we are with you.

Mr. Chair, I am pleased to answer your questions.

[The Chair, Liberal, Ben Carr]

Thank you very much, Minister.

We will now begin the first round of questions.

Ms. Borrelli, the floor is yours for six minutes.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Thank you for coming to committee, Minister Joly.

You mentioned families and workers and the supports that we need to give them in order for our automotive industry to be successful in the future. This morning, you talked about loans and programs that would help people and businesses impacted by the 232 tariffs.

In the last two weeks here at committee, we've had many witnesses from my area of Windsor—Tecumseh—Lakeshore, others from across Ontario and some from Quebec who talked about the problems they're having with these tariffs and the impacts on their companies. Their testimony made it very clear that the only thing that could help them would be a good tariff deal with the U.S.

I have many quotes here, if you'd like to hear them. Many of them testified that loans wouldn't help them. The tariffs make them totally unprofitable. If they took the loans, they would just be delaying the problem, because they wouldn't be able to pay them back.

Can you see in the future any other supports you can give them?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

First and foremost, I agree with you that we need to fight for our workers. Be they auto, steel, aluminum or copper workers, they're all affected by tariffs.

Indeed, we're engaging with the U.S. We will work on having a good deal for Canadians, but we won't just accept any deal. At the same time, we believe there are many things we can control. We can't control what is going on in the White House, but we can control what we're doing here at home.

That's why today we announced some new supports—1.5 billion dollars' worth of supports. These are loans from the $1-billion program by the BDC. They're interest-free for the first year and have very low interest rates for years two and three. At the same time, throughout the three-year period, only the interest will have to be paid. It's actually a really good support for companies. It's for bigger companies, because these loans will be between $5 million and $50 million.

The smaller companies have the regional development agencies. Obviously, in your region there's FedDev, which is really important. These loans include up to $1 million of non-unrepayable contributions. They're basically supporting smaller and medium-sized businesses.

We have to do both. We have to engage with the American administration, and we have to work with our Canadian automakers to make sure they advance our interests and Canada's interests in Washington. At the same time, we need to offer support to Canadian companies, which need to be able to adapt and pivot.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

There is up to $1 million in forgivable loans through FedDev.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Yes. We can provide you with all the information in order for you to relay that information to your businesses.

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Thank you. It's very new information, so it was hard to get all of the details.

If you look at some of our medium-sized companies for tool and mould.... Let's remember that tool and mould are foundational to the auto industry. Some of our companies that are considered medium-sized would blow through that $1 million in forgivable loans in a month and a half to two months.

Would you commit to making all of these loans forgivable, as you did during the epidemic?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

When you look at what the regional development agencies are proposing, it's actually a similar type of program. The one we're proposing through the BDC has very favourable terms, which were used during the 232 tariffs at the time of the first Trump administration.

We'll adapt as events occur. I think this was well received today. I've been receiving a lot of different.... The steel association came out saying that it was very favourable, as were regional organizations in Ontario and Quebec and the chamber of commerce of Ontario. I also had different CEOs from small to bigger-sized businesses—

[Kathy Borrelli, Conservative, Windsor—Tecumseh—Lakeshore, ON]

Thank you, Minister.

I've also talked to many of the company owners in my area. They really, honestly don't feel that this is going to benefit them in the short run or the long run. They're looking for some tariff relief. They feel it's their only solution.

[The Chair, Liberal, Ben Carr]

You have 15 seconds, Minister. I'll afford you the opportunity to respond.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

We can work together to explain to you the different conditions. That way, we can work together to make sure they are also very well aware, because obviously we need to have the information flow. I'm convinced that they will be convinced.

At the same time, we're also very open to different options. I'm looking forward to working with you on that.

[The Chair, Liberal, Ben Carr]

Thank you, Ms. Borrelli.

Mr. Ntumba, you have the floor.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Thank you, Mr. Chair.

Good afternoon, Minister.

The impact of U.S. tariffs is being felt in Quebec and elsewhere in Canada. Here in Quebec, the aluminum and metal processing sector is central to the economy in regions like mine, Mont-Saint-Bruno—L'Acadie.

In that context, how will the plan announced today take into account regional realities, particularly those in Quebec?

How does your department intend to collaborate with the Quebec government to maximize economic benefits in the most affected regions?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

We respond to the White House's measures as they are implemented. Today's announcement follows a series of measures that were already in place. First, we had already introduced 25% counter-tariffs on U.S. steel. Second, we had already tightened border rules for steel importers here in Canada who were not complying with the rules. We had also already assisted various companies through our regional economic development agencies. Then, we had already created a $5 billion fund to help businesses. Today, we are adding $1.5 billion to assist affected industries, such as steel, aluminum, and copper. We are also prepared to discuss anything related to forestry and softwood lumber.

In a nutshell, the funds are distributed by the Business Development Bank of Canada to small and medium-sized businesses—but these are extremely favourable loans ranging from $5 million to $50 million. They are essentially interest-free for the first year. Then, there is a very low interest rate for the second and third years. Over the term, only interest is payable, effectively. So there is nothing to pay in the first year, and then the interest rate is very low for the second and third years. Repayment is required at the end of the term, but in three years, we'll be in a different world. We'll see where we stand at that point.

We wanted to provide businesses with predictability so they can plan their operations, despite a world in constant flux. At the same time, regional economic development agencies will also receive funding. There will certainly be support in Mont-Saint-Bruno—L'Acadie, through Canada Economic Development for Quebec Regions, or CED—for which I am responsible. I look forward to working with you, colleague.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

I'd like to ask one last question before yielding the floor to my colleague, Ms. Acan.

How do you plan to allocate that across Canada, outside of metal processing companies?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

BDC operates throughout the country, but primarily in urban centres, as we know. That is why we work with all regional economic development agencies: Canada Economic Development for Quebec Regions, or CED; the Federal Economic Development Agency for Southern Ontario, or FedDev Ontario; the Atlantic Canada Opportunities Agency, or ACOA; Canada Economic Development for the Prairies, or PrairiesCan; Canada Economic Development for the Pacific, or PacifiCan; and the Canadian Northern Economic Development Agency, or CanNor.

Funding allocations will be announced shortly.

[Bienvenu-Olivier Ntumba, Liberal, Mont-Saint-Bruno—L’Acadie, QC]

Thank you.

[Sima Acan, Liberal, Oakville West, ON]

Minister, thank you very much for your ongoing support to our industries, including Siemens in Oakville. It was great to see you this morning when you announced the $1-billion loan program through BDC for steel, aluminum and copper industries to support our businesses amid tariff disruptions.

I'm a member of the auto caucus along with my colleague MP O'Rourke. We have had many opportunities to meet with industry organizations, unions and major OEMs operating in Canada. What I keep hearing is consistent: They are praising the direction this government is going in with the repeal of the EV mandate, the return of the purchase incentives, and the investment signals. They are pretty happy.

My riding of Oakville West is home to a significant number of auto workers at Ford Oakville and at the automotive suppliers who wake up every morning knowing that what happens at the federal level affects their families directly. The stakes are high.

Recently, GM announced $691 million for St. Catharines on top of their recent announcement of an investment of $50 million in Oshawa for stamping operations. Statistics Canada reported a 47% surge in zero-emission vehicle sales in February alone. Toyota and Honda continue to operate and invest in their operations.

Minister, in a global environment of unprecedented trade pressure and uncertainty, how has the auto strategy managed to hold the confidence of an industry that has so much at stake? What does its success tell us about where Canada is heading?

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

There are two phenomena to understand when looking at the auto sector not only in Canada but also worldwide. First and foremost, it's really about the impacts of tariffs. In Canada, we're in a trade war. We have 25% tariffs against our auto sector, but because of the rules of origin, basically, the effective tariff is around 12.5%. That's something we have to reckon with. The other thing is that there have been a lot of investments made across the world in electrification. Capital is going towards electrification. There's an entire industrial revolution happening in the auto sector. For a long time, North America was leading these new technologies. We need to make sure that this continues to be the case.

That's why our auto strategy has two objectives. The first is to support auto production in Canada. The second is to make sure we're able to double down on electrification and adopt these new technologies in order to make sure that the plant in your riding, in Oakville, which is undergoing an important retooling, is developing the best cars in the world for the world.

We're able to see that with Honda and Toyota, which recently increased their production. They're now at more than 75% of all auto production in Canada. Premier Ford and I were in Windsor, in Ms. Borrelli's riding, opening a new NextStar battery plant facility. I was in Germany two weeks ago meeting with Volkswagen. They are opening an important plant in St. Thomas, which will create thousands of jobs.

We need to make sure we do both. We need to defend our auto workers and advocate for them in Washington. At the same time, we need to be clear-eyed and to be adopting new technologies that we're seeing across the world.

[Sima Acan, Liberal, Oakville West, ON]

Thank you very much.

[The Chair, Liberal, Ben Carr]

Thank you very much, Ms. Acan.

Mr. Ste-Marie, you have six minutes.

[Gabriel Ste-Marie, Bloc, Joliette—Manawan, QC]

Thank you, Mr. Chair.

Minister, Deputy Minister, good afternoon.

I'd like to begin with two requests for Mr. Vincent.

First, would you please provide the committee with the total amount disbursed to date for the battery sector? We would appreciate it.

My second request relates to the order we discussed here. Can you provide us with the number of SMEs and jobs, by region and by sector, that are affected by this new order? How many companies will be paying these 25% tariffs?

Let me explain. We based our assessment on a University of Calgary study—which even Ms. Karina Gould cited—in stating that 55% of Quebec's exports were affected by this measure. However, over the weekend, Le Devoir reported that Desjardins had conducted an unpublished study indicating that only a quarter of Quebec's exports would actually be targeted.

I would therefore appreciate it if you could provide us with figures we can rely on.

[Mélanie Joly, Liberal, Ahuntsic-Cartierville, QC]

Allow me to respond.

It will be no problem for us to provide you with those figures, of course. That said, I would note that various studies were also conducted by the government, and we are working with Statistics Canada. We will provide you with what we currently have, but we are still assessing the tariffs' impact under this new interpretation, because it is primarily based on companies coming forward themselves to say they are affected.

Mr. Vincent, is there anything you would like to add?

[Charles Vincent, Senior Assistant Deputy Minister, Industry Sector, Department of Industry]

No, but we'll happily follow up.

We have figures to share with you on that. As the minister said, it is important to have figures, but we will ensure that they are accurate.