Kingston said the incentives, contained in the Inflation Reduction Act passed in August, give US electric vehicle battery manufacturers a refundable tax credit that could top C$1.4 billion ($1 billion) annually for a typical facility.
“On batteries, the IRA puts Canadian battery production at a significant disadvantage,” Kingston told a Canadian parliamentary committee, which is studying the matter, on Tuesday in Ottawa.
Lawmakers heard testimony from industry groups that warned Canada will steadily lose investment to the US on everything from steel production to mine development if it doesn’t keep pace with its neighbor and biggest trading partner.
The oil and gas industry has also been pressuring Freeland to catch up to the US on tax credits for carbon capture technology.
Canada realistically can’t go dollar-for-dollar with US legislation that earmarks more than C$500 billion in new climate spending, industry…
