Why Canada leads from A to Z in EV battery supply chains

The automotive industry is undergoing a transformation unlike any since its inception more than a century ago. 

With governments around the globe aggressively putting policies in place to combat climate change, battery-powered electric vehicles (EVs) offer enormous potential to reduce greenhouse gas emissions. The world’s largest automakers are already investing large sums of money in making the transition from internal combustion engines to lithium-ion batteries. New vehicles, however, also require substantially different supply chains, with new demands for raw materials, manufacturing processes and waste disposal.

The development of a battery supply chain presents two major opportunities for Canada: a chance to reshape its automotive sector, one of the largest in the world; and the once-in-a-lifetime opportunity to become a global leader for EVs. 

Unique “mines-to-mobility” supply chain

Canada is one of the few countries in the world with the potential to form a “mines-to-mobility” supply chain to secure new mining and value-added manufacturing industries. It has a rich resource endowment of over 60 minerals and metals, including the key minerals required for battery production: lithium, nickel, cobalt, graphite and manganese. Canada can also process these minerals, thereby producing precursor materials needed by battery manufacturers. Automobile manufacturers that have been in Canada for a century are making investments to make their Canadian facilities production centres for EVs. Finally, Canada has a growing battery recycling industry that can make the supply chain genuinely circular. 

Foreign direct investment will be required to develop the EV battery supply chain in Canada, just as it was needed to establish the automobile manufacturing industry in the early 20th century. Investors in the EV battery supply chain will find advantages unlike those in any other country. Canada has:

  • key segments of the supply chain , such as mining, auto assembly and battery recycling.  
  • all the raw materials needed for battery production. 
  • the world’s most highly educated workforce – experienced in sustainable mining, advanced manufacturing, and R&D.
  • strong government support and incentives for research and innovation, access to programs and incentives to invest and expand. 
  • a welcoming business climate, which includes the lowest manufacturing costs in G7,  the lowest tax rate on new business investment in the G7 and a proposed 50% corporate tax reduction for businesses that manufacture zero-emission technologies.
  • clean energy from coast-to-coast at a competitive price with provinces like Quebec, Manitoba, and BC producing over 95% of their energy from renewables, and Ontario producing 96% of its energy from zero-carbon sources.

Net-zero by 2050

The Canadian government is committed to achieving a Net-Zero greenhouse gas emission target by 2050. The battery electric vehicle segment is a priority for Canada to emerge from the COVID-19 pandemic with a stronger, cleaner and more sustainable economy for the 21st century.

Learn more about investing in the EV battery supply chain in Canada by contacting our Investor Services team at Invest in Canada.

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