Canadian Prime Minister Mark Carney announced a new strategy for electric vehicles (EVs) on Thursday, which includes the relaunch of purchase incentives and plans to work with China to advance domestic production and exports of EVs. 

Canada will leverage both existing and newly signed trade agreements – including a recent EV cooperation agreement with China – to drive large-scale investment in the sector, diversify its automotive export markets and position the country as one of the global leaders in the development and manufacturing of EVs, according to a statement released by the prime minister's office.

Under the broader of strategic partnership announced in January, Canada agreed to allow an annual quota of 49,000 Chinese-made EVs into the Canadian market at a most-favored-nation tariff rate of 6.1 percent.

"This is a return to levels prior to recent trade frictions, but under an agreement that promises much more for Canadians," Carney told Reuters. He added that the quota would gradually increase to around 70,000 vehicles in five years.

A recent Leger poll published by The Canadian Press shows public support for the policy shift, with 61 percent of Canadians backing increased access for Chinese EVs despite some concerns.

The EV strategy also includes a five-year, 2.3 billion Canadian dollars (around $1.68 billion) affordability program offering incentives of up to 5,000 Canadian dollars for battery-electric vehicles, along with substantial investments to expand charging infrastructure.