What happened: Ottawa announced its new auto strategy, scrapping the EV sales mandate in favour of emissions standards and a push for domestic manufacturing.

The details: The new strategy is all about building the value chain around EVs, not just buying them. Key measures include:

Beyond the numbers, the framework updates Canada’s trade regime to incentivize domestic production, giving carmakers higher import quotas in exchange for building or investing in Canada.

The context: Canada’s auto sector is highly integrated with the US - parts can cross the border as many as 8 times before final assembly. The sector’s been struggling since Trump enacted 25% tariffs on non-US content in cars and removed Biden-era EV incentives.

Why it matters: The new strategy shifts from compliance to industrial strategy. Canada spent billions on EV supply chains which are now threatened by tariffs and a pullback by US carmakers.

Connecting emissions standards, the Strategic Response Fund, trade policy and demand-side incentives makes Canada a more competitive place to build - and more opportunities throughout the EV value chain: components like electric drive trains and low-carbon composite materials, batteries and battery materials, and EV charging infrastructure.

Not so simple: Like most things, the devil’s in the details. Emissions standards need to be rolled out fast and must be strong enough to actually drive a transition to EVs (not just hybrids) and certainty for EV charging providers.

The bottom line: The feds are rewiring EV policy around what Canada can control: building things, not buying them. Success depends on whether manufacturers value Canadian market access enough to invest here instead of lobbying for tariff exemptions. Maybe we’ll see a Canadian EV OEM (if you’re building this, we’d love to talk).

🌊 pHathom Technologies (Halifax, NS) raised $4 million in seed funding for its ocean-based carbon removal tech. The funding will be used to pilot its technology across Atlantic Canada.

🦾 Relocalize (Montreal, QC) secured $4 million in up front capital for its micro-factory platform through a royalty agreement with CVW Sustainable Royalties.

🌱 Elevate Farms (Toronto, ON) acquired Ottawa’s Fieldless Farms to combine their indoor farming operations and expand internationally.

💧 Xatoms is seeking partners for water purification pilot projects across phosphorus and nitrogen pollution, dyes, and more. Get in touch with Diana here.

🧱 CURA partnered with Aecon Group to test and pilot its electrochemically produced low-carbon cement in Canada.

🔋 Mangrove Lithium signed an offtake MOU with Elevra Lithium to buy up to 144,000 tonnes of spodumene concentrate to process into battery-grade lithium hydroxide.

⛽ Charbone launched its first Hydrogen Supply Hub in Southern Ontario to provide on-demand hydrogen distribution to industrial and transportation customers.

🔌 Kiwi Charge launched a pilot project with General Motors Canada and Pfaff Automotive to test its autonomous EV charging robot at a dealership in Ontario.

🌊 ORPC Canada will test its RivGen Power System in the St. Lawrence River to validate its river-based energy generation.

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Open for business: Ontario opened applications for commercial geologic carbon storage projects. It’s a major step forward for carbon management in the province, creating a clear framework for carbon sequestration.

Carbon pricing updates: The feds proposed updates to industrial carbon pricing that would fix key issues in Canada’s carbon credit markets, including an oversupply of credits, and spark more investment in emissions reductions.

Vote of confidence: A Senate committee endorsed ocean alkalinity enhancement for carbon removal, while flagging the need for more research and regulatory frameworks to advance the industry safely.

Ready to plug in: Canada’s grid can easily support 35% adoption of medium- and heavy-duty EVs according to new modelling from Pembina. Measures like focusing on small trucks and high-use areas could save $1B in infrastructure upgrades.

Critical minerals pact: Canada won’t join a new US-led critical minerals pact with CUSMA negotiations on the horizon. The US plan includes a strategic reserve backed by a $10B government loan.

QUICK HITS

🚀 Call for Innovation: Women in Climate Tech: NorthX will invest up to $3 million in ventures tackling some of the toughest challenges in global decarbonization, while building a stronger climate tech ecosystem in BC and across Canada. Apply by March 13th.

🗓 Carbon Removal Day: Join the carbon removal sector to determine what it takes to put Canada on a path to catalyzing a billion tonnes of carbon removal by 2050. March 5th, Ottawa.

💻 Mangrove Lithium is hiring multiple R&D Engineer roles to develop its platform for producing battery-grade battery materials.