Another electric vehicle manufacturing facility in Quebec shuts down.

Another blow to Canada's electric vehicle (EV) sector, as Flo, a major electric-vehicle charging company based in Quebec, has announced the closure of one of its assembly plants in Shawinigan, leading to the loss of 80 jobs.

The company cites a decline in demand for EVs and the unpredictable nature of the industry due to trade tensions and shifting political dynamics, particularly in the U.S., for the decision. Flo, previously known as AddEnérgie, was founded in 2009 and has been a key player in the Canadian EV market, receiving substantial government support including investments from Export Development Canada, the Caisse de dépôt et placement du Québec, and the Business Development Bank of Canada.

The closure is particularly significant in light of recent challenges faced by other EV manufacturers in the country. For instance, Lion Electric, another prominent Quebec-based EV producer, filed for liquidation in May after receiving $200 million in public funding. The company had sought an additional $24 million in government aid but was denied, prompting Economy Minister Christine Fréchette to express concerns about the private sector's level of involvement and commitment to the company's future.

Flo's decision to pivot away from production and towards the operation and management of charging station networks reflects a strategic shift aimed at achieving more predictable revenues and adapting to the volatile EV market conditions. The company will maintain its other production sites in Grand-Mère, Quebec and Auburn Hills, Michigan. Despite the challenges, Flo's CEO, Louis Tremblay, remains hopeful about the future of the company, emphasizing the importance of focusing on areas that provide stability and growth opportunities amidst the changing landscape of the EV industry.

This situation underscores the challenges faced by companies in the renewable energy sector, which are heavily reliant on government policies and market demand. The Canadian government has been actively promoting the adoption of EVs through various incentives and investments, but the industry's fortunes remain closely tied to global market trends and international politics. As the world continues to grapple with the transition to cleaner energy sources, the success of companies like Flo and Lion Electric will serve as critical indicators of the effectiveness of government support and the overall health of the EV sector in Canada.