The federal government is looking to accelerate the transition from combustion to electric vehicles by funding auto industry SMEs

The government is announcing a new program to fund research and development of zero-emission auto technologies in Canada.

The e-Auto Challenge Program operates under the National Research Council (NRC). It will provide funding to kickstart and support innovation in the light-duty electric vehicle supplier ecosystem in Canada.

“There have been a lot of anchor investments, especially related to batteries and electric vehicle manufacturing…[but] there are gaps in terms of the supply chain. There is a need to support the industry fill these gaps,” says Eddy Zuppel, acting director of the e-Auto Challenge program at the NRC.

“The program will attempt to to fill these gaps by helping industry in the de-risking of technologies with respect to electric vehicle components…[and] helping to create new suppliers.”

The government’s soft launch announcement of the e-Auto Challenge comes as it finalizes the technical requirements for the program. The e-Auto Challenge officially opens mid-2025, with the first round of proposals accepted in 2026.

e-Auto Challenge applicants

Zuppel says there are some areas of interest for the e-Auto Challenge to help guide prospective applicants.

They include:

• Next-generation electric motors
• Advanced power electronics
• Optimized battery systems
• Charging and other supporting infrastructure
• Connected and autonomous vehicle systems

“We’re trying to support Southern Ontario because that’s where the critical mass of the automotive industry is but, we’re open to collaborating with all stakeholders and suppliers throughout the country that are interested in integrating themselves into the automotive sector,” says Zuppel.

Eligible small- to medium-sized enterprises to apply range from industry, academic, government, community partners, not-for-profits, Indigenous governments and organizations, and other stakeholders.

In all, estimates Zuppel, there will be two to three million dollars of funding available each year for seven years for the e-Auto Challenge. As well, there will be a check in with the program halfway through its duration. At that time another call for proposals will open.

“With the challenge programs there’s always a mid-term review where we look at the various projects that were funded, the different partners that were involved, and we re-evaluate the different technological areas to see if they’re still relevant,” says Zuppel.

The NRC will be presenting more information on the e-Auto Challenge at the Electric Autonomy EV Innovation & Technology Conference on February 6, 2025 in Toronto.