Canada’s Federal Economic Development Agency for Southern Ontario (FedDev Ontario) is investing $5 million CAD ($3.9 million USD) in Project Arrow, the first electric vehicle concept designed and built in Canada.

The investment, along with $6.6 million CAD ($5.2 million USD) in other funding, will lead to the creation of one physical concept car and a virtual twin to help test and validate the technology that powers it. The money will be managed by the Automotive Parts Manufacturers’ Association (APMA), which represents 90% of all independent automotive parts manufacturers in Canada.

“This lighthouse project is highlighting hundreds of advanced technology companies around the world and will serve as the calling card for the next generation of leadership in Canadian zero-emissions mobility,” said Flavio Volpe, president of the APMA.

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The agency plans to bring together its members to design, engineer, and build Project Arrow. Envisioned as an all-electric, connected, and autonomous vehicle, the project will also turn to academic partners, like the Ontario Tech University, where the project is already being worked on, per the CBC.

The project will also turn to the Virtual Reality CAVE, another project funded by FedDev Ontario, to develop the virtual platform that is being used to validate and test the vehicle’s autonomous technologies. From there, the plan is to integrate that technology into the physical concept car.

“Cutting transportation emissions is one of the most achievable and beneficial steps Canada can take to reach net-zero emissions by 2050,” said the Honorable Deb Schulte, a member of the Canadian parliament. “Today’s investment showcases the advanced skills of the Canadian automotive and digital technology sectors, and puts southern Ontario at the forefront of technology development for zero-emission and connected and autonomous vehicles.”

Although this is the first EV concept being developed entirely in Canada, GM also plans to build its fully electric BrightDrop EV600 delivery van at its plant in Ontario. Stellantis’ electrification push has led to fears that the company’s Canadian plant may lose all of its products, though, so convincing the industry that the nation’s suppliers are capable of supporting EV manufacturing could be crucial.

Project Arrow will support 80 jobs and at least 40 automotive suppliers and technology firms, said FedDev Ontario in a statement. The physical concept car is expected to be finished in 2022.