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Phase 2 of the Driving Prosperity Plan

One of the government’s top priorities is to make Ontario open for business by growing Ontario’s auto sector and securing new investment in electric vehicles and battery manufacturing.

The release of Driving Prosperity Phase 2 is the next step in our Auto Strategy to secure production mandates for hybrid and electric vehicles and to create a domestic battery ecosystem.

Phase 1 of Driving Prosperity set the foundation for Ontario’s innovative auto sector, its workers, and the families and communities they support.

  • The government listened carefully to what the auto industry required to safeguard the good jobs it supports today, while investing in the skills and technology essential to remain competitive for tomorrow.
  • It established a vision for the future of mobility that builds on decisive action taken by this government to continuing cutting red tape, reducing business costs, helping companies innovate and develop new technologies, investing in skills, and positioning the sector for future growth and increased competitiveness.

Phase 2 of Driving Prosperity is anchored by the objective to maintain and grow Ontario’s auto sector by building at least 400,000 electric and hybrid vehicles by 2030.

The industry has recognized that the car of the future is low-carbon, autonomous, electric and connected. This is a major turning point for the global auto sector which Ontario is in a unique position to capitalize on.

Phase 2 of Driving Prosperity responds to this new technological wave that is sweeping through the global auto industry, and will support domestic part producers, workers, and innovators across the province.

Phase 2 will position Ontario as a North American hub for building electric, autonomous and connected vehicles while supporting a broader supply chain by:

  • Repositioning vehicle and parts production for the car of the future by securing new automaker production mandates that include hybrid and battery EVs, landing a new vehicle assembly plant, making Ontario a significant player in EV battery manufacturing and increasing exports of Ontario-made auto parts and innovations.
  • Establishing and supporting a battery supply chain ecosystem by creating a domestic battery ecosystem anchored with 2 to 3 battery plants and connecting the mineral wealth of Northern Ontario with the manufacturing might of Southern Ontario.
  • Innovating in every stage of development through local creation, design, production and adoption of new products and services in the auto sector that will help Ontario compete globally.
  • Investing in Ontario’s auto workers by ensuring workers are equipped with the skills they need to secure rewarding, high-paying jobs in the auto sector and broader supply chain, including battery and steel production, auto assembly, and research and innovation.

Thanks to the Ontario government’s efforts in Phase I, the auto industry responded by investing $6 billion over the past year in Ontario assembly operations including around $4 billion in transformative investments in electric vehicle production.

This signifies a major turning point for the province’s auto sector that we must capitalize on and leverage, particularly as Ontario turns the corner on COVID-19.

Phase 2 of Driving Prosperity will further capitalize on Ontario’s numerous advantages in the auto sector — innovation, award-winning manufacturing, state-of-the-art research and development facilities, a skilled workforce, a leading tech cluster in North America, and access to key minerals and resources – by continuing to transform and grow the auto sector. This will provide good jobs for workers and support for their families and communities.

It will bolster our auto ecosystem for the continued pivot to electric, low-carbon, connected and autonomous vehicles.

Our vision is to position Ontario as a North American leader in developing and building the car of the future through emerging technologies and advanced manufacturing processes.

Learn more: Ontario Stakes its Claim to Compete for Future Auto Sector Investments | Ontario Newsroom