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New modelling finds Canada’s battery provide chain could possibly be a boon for jobs and the economic system, assuming Canada takes motion


LONDON / VICTORIA — With the U.S.’s new electrical car tax credit score requiring that EVs and their batteries be made in North America, Canada’s EV battery provide chain is within the highlight. 

That highlight is nicely warranted. If Canada performs its playing cards proper, a home EV battery provide chain might assist as much as 250,000 jobs by 2030 and add $48 billion to the Canadian economic system yearly.

That’s in keeping with modelling from Clear Power Canada and the Trillium Community for Superior Manufacturing, whose new report, Canada’s New Financial Engine, explores how Canada can efficiently construct an EV battery provide chain with the intention to turn out to be a North American battery powerhouse.

Current months have seen a stream of latest battery investments, from the $5 billion Stellantis and LG Power Resolution are investing in a Windsor battery manufacturing unit to the $500 million Normal Motors and Posco are investing to carry battery materials manufacturing to Bécancour, Quebec. 

However regardless of these encouraging investments, the success of Canada’s EV battery provide chain—and the a whole lot of hundreds of future jobs it might assist—remains to be largely depending on swift authorities motion.

In a situation the place no extra authorities motion is taken, Canada’s battery provide chain would create simply 60,000 jobs and contribute solely $12 billion in GDP—fulfilling solely a couple of quarter of each its jobs and GDP potential.

Accordingly, the report identifies six methods through which Canada ought to focus its efforts to satisfy its battery-building potential. Whereas Canada might do all of it, a more practical technique would double down on just a few key phases, comparable to EV meeting, battery cell manufacturing, clear battery supplies manufacturing.

In brief, we’ve got a once-in-a-generation alternative to construct a battery provide chain that would be the financial engine of tomorrow’s economic system. 

Right here’s what Canada must do:

  1. Develop a technique: Canada wants a public-facing, nationwide battery technique that pulls present efforts collectively, connects dots throughout the battery provide chain, and guides industrial growth.
  2. Construct the workforce: Canada is residence to one of many world’s prime expertise swimming pools however is confronted with employee shortages and challenges making certain the appropriate expertise is in the appropriate place. Canada should develop new methods to have interaction and mobilize huge populations of expert staff.
  3. Speed up mission growth: Canada faces vital competitors in securing extra battery provide chain investments. Canada ought to deal with lining up mission land and infrastructure wants whereas creating predictable and environment friendly assessment processes for tasks throughout the provision chain.
  4. Develop the North American market: Canada should assist and develop insurance policies to extend home EV demand and uptake.
  5. Promote Canada’s clear battery model: Canada ought to proceed selling its many clear battery benefits—together with low-carbon important minerals, proximity to the U.S., a cutting-edge battery analysis and recycling management, and ample clear electrical energy—to draw funding into its battery provide chain and improve export alternatives.
  6. Scale up homegrown clear battery leaders: Canada is residence to a number of revolutionary battery know-how firms. The following step is to leverage present investments from multinational battery cell manufacturing firms to additionally assist home firms.

QUOTES

“Canada has all the appropriate substances to be a battery powerhouse, from the required mineral assets to main cleantech firms. Nevertheless it’s important that Canada acts swiftly and decisively, or it dangers squandering hundreds of jobs and billions of {dollars}.”

Evan Pivnick, Clear power program supervisor at Clear Power Canada

“The chance to construct a completely built-in EV battery provide chain is in entrance of us. The work has begun, however there’s heaps extra to do. Higher integrating Canada’s mining and manufacturing industries can yield huge financial and social advantages, however would require a degree of presidency assist—and political willpower—that we’ve got not seen because the Sixties.”

Brendan Sweeney, managing director of the Trillium Community for Superior Manufacturing

KEY FACTS

  • By 2030, Canada’s EV battery provide chain might assist almost 250,000 direct and oblique jobs and add $48.2 billion to its economic system. When induced jobs are thought of (for instance, staff at a restaurant common with provide chain staff), a complete of almost 323,000 jobs could possibly be created throughout Canada and $59 billion added to the Canadian economic system.
  • Between 2020 and when the evaluation underlying this report was finalized in June 2022, Canada attracted a minimum of $1 billion associated to EV battery mineral extraction and supplies manufacturing, $5.2 billion associated to EV battery cell and module manufacturing, $6.6 billion associated to EV meeting, and $1 billion associated to EV battery parts and recycling.
  • Since June 2022, Canada has seen extra main battery bulletins, such Umicore’s $1.5 billion plan to assemble a cathode energetic battery supplies facility in Kingston, Ontario, and current offers with Volkswagen and Mercedes-Benz to safe Canadian EV battery uncooked supplies whereas cooperating in different areas comparable to battery manufacturing. 
  • Canada ranks among the many world’s prime 5 nations in the case of battery provide chain potential, largely resulting from its entry to key metals and minerals. 
  • The worldwide marketplace for batteries will probably be value a minimum of US$360 billion by 2030. By 2040, the Worldwide Power Company tasks demand for important minerals to develop by a minimum of 30 instances to fulfill rising demand for batteries utilized in EVs and storage.

RESOURCES

Report | Canada’s New Financial Engine

Op-ed | Canada’s new oil is battery energy—however Trudeau should act now

Technical Report | Growing Canada’s Electrical Automobile Battery Provide Chain: Quantifying the Financial Impacts and Alternatives

Blueprint | Canadian Battery Activity Power’s A Batteries Blueprint for Canada 

Webinar | Join Clear Power Canada’s upcoming webinar on how Canada can turn out to be a world battery powerhouse 

Launch | Trade group responds to Stellantis and different electrical car battery provide chain bulletins



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