While Canadians' interest in electric vehicles (EVs) is growing, their adoption remains uneven due to high purchase prices, inadequate charging infrastructure and limited battery range, especially in winter. But the benefits of EVs are clear: they cost less to operate and maintain, and consume less energy than gas-powered cars. They can also cut greenhouse gas emissions significantly and are just as safe as conventional vehicles.
What Canada needs now are EV technologies designed in Canada, built for vehicles manufactured in Canada—and crafted for Canadians. It needs to address the key drivers of adoption: price parity, ample charging infrastructure and winter confidence across every popular vehicle segment. The destination is clear: smarter vehicles, a stronger domestic industry and a cleaner future.
That's where the e-Auto Strategy comes in. Led by the National Research Council of Canada (NRC), the bold, three-pronged initiative is a coordinated national effort designed to accelerate Canada's EV leadership. Its first pillar is a seven-year NRC e-Auto Challenge program, focused on industry, bringing researchers, manufacturers and innovators together to move solutions from lab to marketplace faster.
"Within the past 2 years, we've unified multiple partners with complementary expertise and resources around a shared vision," says Dr. Éric Baril, Director General, Automotive and Surface Transportation Research Centre. These include collaborators and investors from Canadian industry, academia, not-for-profits, governments and other organizations. "In addition, the NRC's nationwide research centres offer capabilities in a range of disciplines that will help give this initiative additional depth and strength."
The second pillar of the e-Auto Strategy is a new partnership between the NRC and McMaster University, through the McMaster Automotive Resource Centre (MARC), to establish the Southern Ontario Innovation Hub (SOIH) in Hamilton, Ontario. In the heart of Canada's automotive innovation ecosystem, the hub will open its doors at McMaster Innovation Park in the fall of 2026. It will convene industry, academia and government to accelerate the development and adoption of next-generation EV technologies.
Ali Emadi, McMaster professor and Canada Research Chair in Transportation Electrification and Smart Mobility, says that McMaster is uniquely positioned to advance the NRC's e-Auto Strategy.
"MARC's global leadership in vehicle electrification and smart mobility aligns seamlessly with the NRC's renewed automotive research focus," he says. "Co-locating ensures we maximize the impact of our infrastructure, expertise and training capacity to advance Canada's automotive innovation ecosystem and keep our companies competitive."
A critical third pillar is the installation of new NRC capabilities within the SOIH for the development of EV technologies.
Four focus areas, one goal
"Southern Ontario is a hotspot for critical components of the automotive supply chain—small and medium enterprises (SMEs), original equipment manufacturers (OEMs), multinational enterprises (MNEs) and other government departments (OGDs)," adds Dr. Sooky Winkler, e-Auto Challenge program director. "And we're bringing NRC expertise from across the country to address the toughest challenges."
The e-Auto Challenge program tackles 4 areas that matter most to consumers:
- Power electronics: Smaller, more powerful chargers and converters
- Electric motors: Improved cost, performance and efficiencies
- Battery systems: Safer, longer-range and more affordable systems
- Enabling technologies: Smoother adoption and integration of EVs
"The goal is simple: make EVs cheaper, lighter, more efficient and less reliant on expensive materials," says Dr. Winkler. "It's all aimed at quickly turning cutting-edge research into products that consumers can bank on." And the journey has begun.
With industry-driven, multi-partner R&D projects already moving from prototype to commercialization, the e-Auto Challenge program will bring innovations to Canadian suppliers more quickly than ever. Projects are earmarked for clear market potential and the ability to leverage Canada's strengths in automotive technology.
Government priorities
The NRC's e-Auto Challenge program aligns directly with the Government of Canada's new auto strategy, which aims to position Canada as a global leader in EV manufacturing by leveraging Canada's world-class workforce, leading-edge research and development and capabilities in artificial intelligence, advanced manufacturing and clean technology.
The program also aligns with federal priorities, such as Canada's Climate Change Plan, which aims to cut greenhouse gas emissions by 40% in 2030 and achieve net-zero emissions by 2050. Targets include 75% EV adoption by 2035 and 90% by 2040.
Driving toward the future
The e-Auto Challenge program is about more than cleaner, more cost-effective transportation; it's about economic leadership.
It's about harnessing Canadian potential to meet not only government mandates but also industry needs and consumer demands. The results will be EVs for mainstream Canadians that are affordable, reliable, trusted, release fewer emissions and build a stronger automotive industry. This innovation-focused program will help keep Canada competitive on the international auto stage.
"We have world-class vehicle manufacturers, cutting-edge technology, top-tier talent and the resources to make Canada's auto industry a global competitor," concludes Dr. Baril. By accelerating innovation and strengthening collaboration, the e-Auto Challenge program positions Canada as a serious player in the rapidly evolving EV market.
The road to a greener, cleaner future is underway—and it's electric.
Join the Challenge
Our e-Auto Challenge program launched a new call for proposals. The deadline to apply is May 22, 2026. Canadian SMEs who would like to express interest are invited to review the specifics of the call by consulting the e-Auto Challenge program call for proposals page.
Grant and contribution funding for this call is made available through the NRC's Collaborative Science, Technology and Innovation program (CSTIP) for eligible collaborators who offer complementary expertise. Consult our website for more information on all funded collaborative R&D initiatives supported by CSTIP .