A government update report says Canada's EV transition could cost more than $300 billion by 2040.Canadian financial commentators also recognize the reality of the risky future investment in EVs. I have written several times about the Trudeau government's fantasy plans, the unattainable electrical grid capacity need, the consumer cost of EV vehicles, and their unfriendly environmental life cycle.To be trendy for the environmental vote, the government jumped into huge giveaways of our money for the manufacturing of EVs, but likely, not all of the boastful political announcements will be realized. It is the old story of the market. Governments may try to manipulate the market for a while, but eventually, reasonable economics determines for good and ill.I expect Trump to win the election in the USA. He pledges to cancel the Biden policy of EV mandates and massive subsidies. There will still be an EV market in the USA, but the vast government market manipulation will end.Then, expected sales for such vehicles will collapse as the US government moves away from the substantial subsidy schemes for vehicle manufacturing, consumer purchase subsidies, and the expensive fixes needed for electrical grids.We must remind ourselves that Canada is a small economic player. Our economy is in the 10th spot, but it is also less than the State of California. Canada’s Liberal government myths about EVs will probably evaporate as the market reality hits. Moreover, Canada's climate is not conducive to significant EV use. Upgrading the grid and retrofitting apartments and homes will also take years.Additionally, independent environmentally conscious people will fund an analysis to thoroughly document how environmentally unfriendly EVs are in their complete life cycle as primary vehicles. Like traditional vehicles, EV cars wear out and break down, are comparatively unreliable, and are very expensive to repair or restore. Vehicle insurance will become a problem.Fire departments nationwide must upgrade with expensive technology to respond to EV road fires and accidents. Markets are complex, consisting of competing vectors that are not predictable. Donald Trump's election will soon bring about the cost reality adjustment for EVs. With Pierre Poilievre's election, the Conservatives will face hard economic choices.In response to what will happen in the US, Canada will have to reduce or end its EV mandates and let more normal economic markets unfold with decreased subsidies. Canada needs a balanced budget much more than EV cars.According to a report released by Natural Resources Canada, Canada’s electric vehicle transition could cost more than $300 billion by 2040 as charging infrastructure is expanded.The report, an update to a 2021 study that Natural Resources Canada also commissioned, forecasts that Canada needs to significantly accelerate the pace of installing charging infrastructure to add 40,000 public charging ports per year on average between now and 2040. That is a significant increase, given that there are currently around 32,000 public ports across the country. The report cites that upgrading the electrical grid between 2025 and 2040 is the highest cost to support the mandated number of electric vehicles. Meeting the report's target of 100,520 charging ports by 2025 will be a near-impossible challenge. The federal government has mandated that all new vehicles sold in Canada be zero-emission by 2035, with interim targets of reaching 20% by 2026 and 60% by 2030. My prediction is that the market's adjustment reality will require that the collective Liberal scheme for EVs will be cancelled.EVs currently represent less than 3% of vehicles on the road. That’s not enough to encourage for-profit companies to significantly invest in charging stations. Liberal policy hyperbole and myth-making don’t match the coming reality.
A government update report says Canada's EV transition could cost more than $300 billion by 2040.Canadian financial commentators also recognize the reality of the risky future investment in EVs. I have written several times about the Trudeau government's fantasy plans, the unattainable electrical grid capacity need, the consumer cost of EV vehicles, and their unfriendly environmental life cycle.To be trendy for the environmental vote, the government jumped into huge giveaways of our money for the manufacturing of EVs, but likely, not all of the boastful political announcements will be realized. It is the old story of the market. Governments may try to manipulate the market for a while, but eventually, reasonable economics determines for good and ill.I expect Trump to win the election in the USA. He pledges to cancel the Biden policy of EV mandates and massive subsidies. There will still be an EV market in the USA, but the vast government market manipulation will end.Then, expected sales for such vehicles will collapse as the US government moves away from the substantial subsidy schemes for vehicle manufacturing, consumer purchase subsidies, and the expensive fixes needed for electrical grids.We must remind ourselves that Canada is a small economic player. Our economy is in the 10th spot, but it is also less than the State of California. Canada’s Liberal government myths about EVs will probably evaporate as the market reality hits. Moreover, Canada's climate is not conducive to significant EV use. Upgrading the grid and retrofitting apartments and homes will also take years.Additionally, independent environmentally conscious people will fund an analysis to thoroughly document how environmentally unfriendly EVs are in their complete life cycle as primary vehicles. Like traditional vehicles, EV cars wear out and break down, are comparatively unreliable, and are very expensive to repair or restore. Vehicle insurance will become a problem.Fire departments nationwide must upgrade with expensive technology to respond to EV road fires and accidents. Markets are complex, consisting of competing vectors that are not predictable. Donald Trump's election will soon bring about the cost reality adjustment for EVs. With Pierre Poilievre's election, the Conservatives will face hard economic choices.In response to what will happen in the US, Canada will have to reduce or end its EV mandates and let more normal economic markets unfold with decreased subsidies. Canada needs a balanced budget much more than EV cars.According to a report released by Natural Resources Canada, Canada’s electric vehicle transition could cost more than $300 billion by 2040 as charging infrastructure is expanded.The report, an update to a 2021 study that Natural Resources Canada also commissioned, forecasts that Canada needs to significantly accelerate the pace of installing charging infrastructure to add 40,000 public charging ports per year on average between now and 2040. That is a significant increase, given that there are currently around 32,000 public ports across the country. The report cites that upgrading the electrical grid between 2025 and 2040 is the highest cost to support the mandated number of electric vehicles. Meeting the report's target of 100,520 charging ports by 2025 will be a near-impossible challenge. The federal government has mandated that all new vehicles sold in Canada be zero-emission by 2035, with interim targets of reaching 20% by 2026 and 60% by 2030. My prediction is that the market's adjustment reality will require that the collective Liberal scheme for EVs will be cancelled.EVs currently represent less than 3% of vehicles on the road. That’s not enough to encourage for-profit companies to significantly invest in charging stations. Liberal policy hyperbole and myth-making don’t match the coming reality.
