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Why The Canadian Government Is Funding Public Companies

February 19, 2024
x min read

Publicly traded companies in Canada have recently been finding support from a new source: the Government of Canada.

What’s happening:

  • The Canadian government has recently been awarding grant funding to multiple different publicly traded companies
  • The new funding has gone towards supporting battery technology, carbon sequestration, helium gas production and more

Why it matters:

  • Access to non dilutive capital through government funding is one of the most valuable assets for publicly traded companies on the leading edge of innovation
  • By providing capital to publicly listed companies through grants, Canada is deepening the ability for companies to both take risks and accelerate their growth trajectory

Who is making moves:

  • Electra Battery Materials (TSXV: ELBM) has received $5M CAD from the Canadian government to advance construction of their cobalt sulphate refinery which aims to supply the world with battery grade cobalt needed for electric vehicles
  • Lithium Bank (TSXV: LBNK) was awarded funding from Next Generation Manufacturing Canada to supply lithium brine for use in advanced carbon sequestration cement products
  • Royal Helium (TSXV: RHC) recently was the recipient of $3M CAD through the Aerospace Regional Recovery Initiative to support Royal Helium in providing purified helium gas to space launch companies within North America

Going deeper:

Yes, but:

  • Government funding from Canada for startups and publicly listed companies is still relatively small, especially compared to the United States who have been pouring in enormous amounts of funding into everything from battery technology to domestic supply of nickel

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