It’s not just the U.S. that is experiencing a business walk-back from investment in electric vehicle (EV) technology. Despite a CA$52 billion ($37.3 billion) investment, paid or pledged, the Canadian government is unlikely to see the comprehensive, minerals-to-autos, end-to-end EV supply chain it envisaged any time soon. 

According to WardsAuto.com, Honda Canada on May 14 announcement that it is indefinitely suspending work on building a CA$15 billion EV and battery plant in Alliston, Ontario. Further, Stellantis announced in February 2026 that it was selling its stake in the CA$5 billion NextStar Energy battery plant in Windsor, Ontario, to joint venture partner LG Energy Solution — as part of a $26 billion write-down over EVs. Meanwhile, the Québec government terminated a deal with Sweden’s Northvolt in September 2025, halting work on a planned CA$7 billion EV battery plant near Montréal following the company’s bankruptcy.

Honda said that its indefinite suspension of the “Canadian value chain investment project” in Alliston, Ontario, for making EVs and batteries, is “in response to evolving business conditions, a change in external resource strategy and shifting customer demand” — while calling the suspension “appropriate at this stage.”

WardsAuto.com says the developments have prompted questions from analysts and policy-makers about whether the value of Canada’s multi-billion-dollar government subsidies for the EV industry will be realized.