NGen Electric Vehicle Manufacturing Value Chain Program

As Canada and the rest of the world strive to meet carbon emission goals by reducing their greenhouse gas emissions and creating more environmentally friendly societies, governments are turning to government funding opportunities to stimulate automaker interest in producing electric vehicles (EVs) and zero-emission vehicles (ZEVs).

One such program is the NGen Electric Vehicle Manufacturing Value Chain Program, which invests in innovative, business-driven, collaborative projects designed to integrate ZEVs into the Canadian supply chain. The objective of this program is to focus on manufacturing scale-up along the ZEV value chain, specifically on battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs), and components of these vehicles.

The next few years will be critical for Canada to meaningfully participate in the North American and global electric vehicle market. Canada, like many other global jurisdictions, have announced EV mandates, which includes a ban on the sale of internal combustion engine (ICE) vehicles by 2035. The EV market share is projected to increase from 3% in 2020 to 20% in 2030.
NGen Website

This article review the funding allotment, eligibility criteria, and other factors businesses should know about the NGen Electric Vehicle Manufacturing Value Chain Program.

The NGen Electric Vehicle Manufacturing Value Chain Program

Amount of Funding

Applicants can receive a maximum of $2.96M in non-repayable funding , up to a maximum of 37% of the total eligible project expenses. The estimated total cost of the project should be between $1.5 million and $8 million.

Eligible Applicants

Applicants must be incorporated and have a value-added presence in Canada beyond a sales office, (e.g., R&D, manufacturing).

Other criteria include:

  • For-profit organizations;
  • Not-for-profit organizations whose funding and/or revenue come primarily from private-sector or industry organizations, such as research organizations or universities, which facilitate and fund research and development on behalf of the ecosystem;
  • Organizations financed by the activities of businesses, but is not a federal Crown corporation; and
  • Group of Indigenous people, or an organization of Indigenous people.

In addition, the Minister may approve any other entity in advance.

Eligible Activities

Projects must be intended to develop advanced manufacturing technologies, new manufacturing processes, and circular economy capabilities to be used in manufacturing.

A project can include product development, testing, and validation if these activities are necessary to accomplish the manufacturing goals of the project and if they do not exceed 15% of the project’s total cost.

There are several areas of development along the value chain of ZEV that project proposals must support, including: 

  • Processing, refining, and producing minerals and materials that are crucial to produce electric vehicles and their equipment;
  • Components and systems associated with traction batteries;
  • Reducing vehicle weight  th;
  • Power electronics industry including a variety of components and systems;
  • Components and systems that make up electric machines and their components; and
  • Full fuel cell system.

Program Deadline

The deadline for project screening is October 11, 2023. The deadline for project applications is November 15, 2023. Projects must be complete by January 31, 2028.

How to Fund Your Automotive Projects

Government funding provides significant opportunities for automotive manufacturers in Canada that learn how to effectively leverage grants, loans, tax credits, and more. Your business can learn how to start navigating the government funding landscape by downloading your free copy of our Build a Government Funding Plan slide deck.

Moreover, browse the top government funding programs currently available to Canadian auto companies by visiting our comprehensive Automotive Funding Programs Directory today.

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