There are “very active discussions with a number of players” to develop a supply chain for EVs, Industry Minister Franois-Philippe Champagne said in an interview last week.
Mr. Champagne did not name the companies, saying only that he spoke to Volkswagen representatives last week, and that he recently spoke to business leaders from the United States, Japan and the Core.
Canada urges producers and processors of essential minerals to increase their production. It has invested in EV projects through a multi-billion dollar fund created in 2020, and last month pledged C$3.8 billion ($3 billion) over eight years to help boost the production and processing of critical minerals used for EVs.
Canada and the United States want all passenger vehicle sales to be emissions-free by 2035.
In March, Stellantis, the parent company of Jeep and Chrysler, said it would build an EV battery joint venture with South Korean company LG Energy Solution Windsor across the border from Detroit, which champagne called it a “decisive moment”.
KEY MINRALS IN ABUNDANCE
The government has met with industry players to establish a strategy that it hopes will make Canadian minerals, such as lithium, cobalt and nickel, key components of EV production in North America. North, according to industry leaders and the minister.
The plan will be completed this year, government sources said without providing details.
It couldn’t happen fast enough. Electric car makers Rivian Automotive Inc and Tesla warned this year of future battery supply constraints due to a lack of raw materials.
Canadian operators of critical minerals such as Nouveau Monde Graphite Inc, Nemaska Lithium Inc, Electra Battery Materials Corp, and Avalon Advanced Materials Inc want to meet demand.
Nouveau Monde aims to increase its production of graphite-based anode material to 45,000 tonnes per year by 2025, according to a spokeswoman.
Nemaska is focused on building its Whabouchi lithium mine in Qubec and a conversion plant, with the goal of producing about 34,000 tonnes per year, CEO Spiro Pippos said.
Electra is expanding a battery-grade cobalt and nickel sulfate refinery in Temiskaming Shores, Ont., and aims to produce the materials needed for lithium-ion batteries by 2025, according to CEO Trent Mell.
Avalon, which plans to refine lithium in partnership with a unit of Indian group Essar Thunder Bay, Ontario, said support from different levels of government was essential.
“What we needed from the beginning was to show potential end users of manufacturing space that the province is ready to help create the supply chains for the critical materials they need in their technologies,” said Donald Bubar, CEO of Avalon.
But BHP Group Ltd, the world’s largest publicly traded miner which moved its copper and nickel exploration offices to Toronto last year, needs help to meet emissions targets to deliver the minerals reviews.
“When I look at Canada, I think the goal of net zero emissions by 2050 is fantastic, but I have a bigger challenge,” Toronto Rag Udd, president of BHP’s Minerals Americas division, said on Monday. . “How do we get these energy sources (low emissions)? How do we work with the provinces to induce that?”
William Adams, head of battery materials research at Fastmarkets, a British commodity price information group, warned of a shortage of minerals if production is not increased.
“Canada is blessed… It’s got nickel, it’s got cobalt and it’s got lithium,” Adams said. “But like everywhere else, it needs a lot more investment in all of these projects.”
($1 = 1.2878 Canadian dollars)