Comment by irishcoffee
4 days ago
Shitty napkin math says china is saving about $1-$1.5B, so I agree, I'm not seeing the needle more here. What _does_ make sense is that this agreement will continue to evolve over time. What _doesn't_ make sense is the 10-40% battery capacity loss because of temperature, for EVs in canada. I think newer EVs manage temperature issues like this better than older models, but I am unfamiliar with chinese EVs so I can't speak to them.
Where would China be getting savings, here? Unless they are also dropping some tariffs? Canada lowering tariffs saves Canadians money.
> Canada lowering tariffs saves Canadians money.
How many chinese EVs are in canada right now? If the answer is close enough to zero as to be insignificant, how is this saving canadians any money on chinese EVs?
If it helps, we can say something like: this adds $1-$2B gross revenue to china selling EVs to canada. Profit, probably less than a $1B. Needle still not moving.
Expanding the market with alternatives that are now cheaper seems like an opportunity to save Canadians money.
> Needle still not moving.
It's a geopolitical needle move, not a purely financial one.