Madam Speaker, I rise today not only as the representative of my constituents, but also as the spokesperson for all Canadians who believe in a cleaner, more prosperous and more inclusive future for our country,
I want to acknowledge that we are gathered on the traditional, unceded territory of the Algonquin Anishinabe people.
I am pleased to speak today to a topic that is critical to our future and that of our planet: the transition to electric vehicles. We all see it and a report published by the International Energy Agency last month confirms it: Global sales of electric vehicles are booming and will continue to grow every year.
Some time ago, Canada decided to become a world leader in the transition to zero-emission vehicles, committing to 100% new electric vehicle sales by 2035. Putting more electric vehicles on the road is an essential part of Canada's approach to fighting climate change. Electric vehicles will allow consumers to save money in the long run. Everyone wins.
Making electric vehicles more affordable and easier to access is one of the most important steps we can take to support a healthy environment and a healthy economy. As we know, the electric vehicle availability standard increases access to affordable electric vehicles and improves air quality. In fact, the Parliamentary Budget Officer's August 2024 report confirms the need for the electric vehicle availability standard.
According to forecasts, the Canadian market will not be able to keep pace with the demand for electric vehicles in Canada nor will it be in a position to help us quickly met our climate targets. We know that rapid advances in global electric vehicle manufacturing and improvements in technology have narrowed the price gap between electric vehicles and internal combustion engine vehicles, even as the performance of electric vehicles continues to improve.
Despite an upward trend in electric vehicle sales in Canada in recent years, the beginning of 2025 saw a notable slowdown. However, it is worth mentioning that one in seven vehicles sold in 2024 was electric. Quebec continues to dominate EV sales with almost half of all EV registrations in Canada. Ontario follows with almost 23%, and British Columbia with 21%. This shows a positive trend in terms of accessibility.
Let us move on to the affordability of electric vehicles. This is a key issue for many consumers. Buying an EV in Canada has many advantages, both for consumers and for the environment. Electric vehicles have lower operating costs than gas-powered and diesel vehicles. In other words, they represent significantly lower ownership costs over the life of the vehicle.
First, battery charging costs are lower because electricity is significantly cheaper than fuel at the pump. Second, CAA estimates that the average owner of a battery-powered electric vehicle saves between 40% and 50% on maintenance costs compared to a gas-powered vehicle, as EVs require less frequent and less complicated maintenance. Third, the purchase price of some models has fallen, making it possible to break even within a few years. After 10 years, the savings can be considerable.
All levels of government and the industry have a role to play in the transition. The Government of Canada is committed to spending $4.7 billion to support the rollout of electric vehicles and charging infrastructure. We are also helping the auto and critical minerals industries manufacture electric vehicles and become part of the EV supply chain in Canada. The Government of Canada is committed to protecting the jobs of auto workers. It is also committed to supporting innovation and investment in the EV supply chain, which is especially crucial for making Canada the fastest-growing economy in the G7.
The Government of Canada is working closely with the Canadian auto industry and provinces such as Ontario to ensure that the Canadian auto industry remains competitive. It is worth noting that the new vehicle sales standard is flexible in that some sales objectives take into account hybrid vehicles.
The Government of Canada will continue to monitor developments in the electric vehicle sector to ensure that targets are achievable. It is clear that Canada has everything it needs to be a global leader in EV assembly and battery manufacturing, with projects across the battery value chain. The battery value chain for automotive and transportation captures the step-by-step process to produce batteries that are needed in the industrial transformation and the electrification of the automotive and transportation sectors. It guides a “mines to mobility” approach to developing a sustainable Canadian battery ecosystem for transport and electric vehicles. This allows Canada to lead in designing and building the vehicles of the future.
When the lithium-ion batteries are at the end of their useful life, the materials and metals they contain are, as much as possible, recovered and processed to be recycled and reused. Currently, between 95% and 98% of the components of electric vehicle batteries are recyclable. Recycling presents its own challenges and is an evolving sector. Given the inherent value of the essential materials in the batteries, this industry is highly incentivized to innovate to conserve these precious materials in the battery value chain. It is essential to reduce the need to extract new materials for the batteries. We are exploring several options to recover materials from electric vehicle batteries in order to improve their sustainability and manage their cost and impact on the environment. This guarantees the environmental sustainability of the value chain.
In the decades to come, the transition to zero-emission vehicles will significantly reduce the pollution from millions of light-duty vehicles in Canada. Even though increasingly stringent greenhouse gas emission standards have been put in place for new vehicles since 2011, total emissions have continued to rise due to Canada's growing population and the increased number of vehicles on the road. What that means is that the electrification of transportation is essential to achieving net-zero emissions by 2050. With over 100 new zero-emission vehicle models currently available in Canada, rapid improvements in battery life and performance, and a growing charging station network, this year is the ideal time to choose a zero-emission vehicle. Many Canadians are increasingly eager to switch to cleaner, more affordable and more stable modes of transportation.
However, the Government of Canada is well aware that some people are still hesitant due to the lack of nearby charging stations and the higher initial outlay. That is why the government helped over 559,000 drivers make the switch to electric vehicles. The government is also supporting the country's economy on the global electric vehicle market through measures that include allocating an additional $900 million under the 2030 emissions reduction plan to build 50,000 additional charging stations. This funding is on top of the $280 million that the Government of Canada has invested since 2016. A total of nearly 85,000 charging stations will be installed across the country by 2029.
The government will also support the auto industry's competitiveness and transition by investing up to $8 billion from the strategic innovation fund and the net-zero accelerator initiative.
The Government of Canada recognizes that EV battery recycling is essential to ensuring a clean and sustainable transition to a clean economy. This process not only prevents these batteries from ending up in landfills, but also recovers critical minerals such as lithium, cobalt and nickel, which are vital to the growth of clean technology and Canada's competitiveness. While end-of-life battery management is the responsibility of the provinces and territories, which are responsible for regulating and monitoring waste treatment operations, the federal government actively supports circular solutions through its critical minerals strategy. This strategy aims to strengthen recycling capacity, develop secondary markets and maximize the use of resources from industrial waste and post-consumer waste. EV batteries are designed to last several hundred thousand kilometres, but as the EV fleet grows, the volume of end-of-life batteries will increase significantly over the next decade. The—