Electrical autos are huge enterprise. A decade in the past, there have been 120,000 EVs offered worldwide. Right this moment, that many are offered in a single week. By 2030, the quantity is predicted to be nearer to 1,000,000 every week.
World wide, automakers are pouring thousands and thousands of {dollars} into electrifying their autos. However with provide snarls pulling the handbrake on gross sales of every kind of automobiles—fuel and electrical alike—one factor is obvious: provide chains matter.
And since EVs use six instances the quantity of crucial minerals of a fuel automotive, the provision chains which have served the normal auto sector for many years are being reforged. It’s an enormous alternative for Canada—if we play our playing cards proper.
At the moment, only a few international locations are chargeable for a lot of the manufacturing of EV battery minerals, and infrequently these international locations are dominated by authoritarian regimes. China and the Congo have been chargeable for 70 per cent and 60 per cent of the worldwide manufacturing of cobalt and uncommon earth components, respectively, in 2019, in response to the Worldwide Vitality Company. And the geographical focus is even greater for battery mineral processing, the place China dominates.
Handily, Canada ranks fifth on this planet for its battery provide chain potential, largely due to its provide of metals and minerals. It’s the solely nation within the Western Hemisphere with recognized reserves of all of the minerals essential to manufacture EV batteries, rating sixth globally in lithium reserves, seventh in nickel, and eighth in cobalt.
The U.S. and the European Union have flagged their dependence on China for battery minerals and supplies as a serious danger to their auto industries. Each areas are working to restructure provide chains—and each have recognized Canada as a safe and steady supply of uncooked supplies.
What’s extra, Canada’s clear electrical energy grid offers it a aggressive edge with automakers trying to supply low-carbon supplies and scale back the carbon footprint of the autos they produce. BMW has dedicated to reducing emissions throughout its operations, as an example, whereas Tesla has indicated a choice for lower-carbon enter supplies like nickel, not too long ago signing a deal with Vale SA to produce nickel from its Canadian operations.
And with the distinctive rise in demand for batteries outstripping the prevailing provide of sure crucial minerals, there’s a mineral useful resource vacuum simply ready to be crammed by Canada. Recognized reserves of the metals and minerals that go into EVs and batteries are greater than enough to assist a world transition to zero-emission autos, however new mines will not be being constructed quick sufficient. The world desires what Canada has—it simply must step as much as the plate.
There are some indicators of motion. The federal authorities put crucial minerals entrance and centre in its most up-to-date finances, allocating $3.8-billion towards manufacturing, processing, and recycling initiatives whereas introducing a brand new tax credit score for the exploration for battery minerals. In the meantime, Ontario has produced a crucial mineral technique to “set up and assist a battery chain ecosystem” for its auto business utilizing northern Ontario’s mineral wealth.
However regardless of some sturdy investments at both finish of the provision chain, only a few of Canada’s metals and minerals are literally making their manner into batteries. And none of them are doing so inside a Canadian provide chain. Until this modifications, Canada runs the chance of repeating historical past by remaining a “staples” financial system, the place its uncooked supplies are exported and later reimported with the worth added (and the related jobs created) some place else.
If Canadian governments wish to seize the battery mineral alternative, they should up their recreation. Which means choosing winners and going all in, whether or not it’s constructing our provide of lithium and graphite or maximizing Canada’s early-stage nickel mines.
That ought to be coupled with accelerated mining undertaking allow timelines that also guarantee Canada meets the best environmental, social, and governance requirements, together with Indigenous session and partnership. New and current mines should even be electrified in order that Canadian mining merchandise are among the many cleanest on this planet. Lastly, we should construct up our home processing and refining capabilities.
That is Canada’s race to lose, however profitable would require taking the precise steps at the moment. It’s time we picked up the tempo.
This publish initially appeared in The Hill Instances.
