Next Generation Manufacturing Canada will distribute the funding to Canadian companies for projects focused on advancing the zero-emission value chain

The federal government is providing $177 million to Next Generation Manufacturing Canada (NGen), the industry-led, non-profit organization behind Canada’s Global Innovation Cluster for Advanced Manufacturing, to bolster Canada’s zero-emission vehicle manufacturing ecosystem.

According to Jayson Myers, CEO of NGen, the organization’s next step will be distribute the funding to selected projects aimed at advancing Canada’s ZEV value chain. This includes decarbonizing the manufacturing processes, circular manufacturing of materials, as well as other strategic, globally significant advanced manufacturing efforts.

Requests for project proposals will be “coming over the next few months,” says Myers, in an email statement to Electric Autonomy. “Interested companies should keep their eye on our website for our next call for proposals.”

NGen’s mission

The Cluster for Advanced Manufacturing is one of Canada’s five Global Innovation Clusters the federal government created in 2017 to accelerate competitiveness and growth in industries where Canada shows leadership.

This week, each of the other clusters also received additional funding from the government as part of a $750-million commitment in Budget 2022. The amounts ranged from $125 million to $150 million.

NGen’s mission is to build up Canada’s manufacturing capabilities by fostering collaboration between its 5,500 members. The members have backgrounds ranging across sectors such as manufacturing, technology, innovation centres and research.

NGen provides funding and business support to companies that develop, implement and scale up advanced technological solutions in Canada’s manufacturing sector for commercialization in global markets.

“The additional funding NGen will receive from the federal government will allow NGen to expand its support for industry-led collaborative projects that address strategic innovation challenges across the electric vehicle value chain,” says Myers.

Accomplishments to date

To date, NGen has invested $220 million in 165 projects, leveraging an additional $380 million investment from industry. NGen says that 80 of the projects it has supported have generated a combined $2.6 billion in revenues. The cluster, in total, is responsible for creating 5,000 new jobs, 26 new companies and 76 IP licensing deals.

In April 2022, NGen selected 15 major ZEV sector projects to receive $76 million in funding. The projects’ main areas of focus included auto manufacturing, EV battery recycling, hydrogen technology, power electronics, lightweight materials and critical minerals.

The latest funding brings the federal government’s total investment in NGen to $427 million. The expected economic GDP impact of the Advanced Manufacturing Cluster is more than $13.5 billion over the next 10 years. It says it will also create over 13,5000 jobs.