Canada is pouring billions of dollars into the electric vehicle industry. Will it pay off?
Canada is heavily investing in the electric vehicle (EV) industry, with Prime Minister Justin Trudeau and Premier François Legault announcing substantial funding for a massive EV battery manufacturing plant by Swedish company Northvolt. The plant, equivalent in size to over 300 football fields, is expected to produce enough batteries to power one million EVs annually. This move aligns with Canada’s broader commitment to EVs, including financial support for Ford’s EV plant and battery subsidies. While the investments come at a high cost, experts argue they are necessary to compete globally and support job creation and economic growth, especially considering the rising global demand for EVs.
EV battery giant Northvolt to build multibillion-dollar plant in Quebec
Swedish battery manufacturer Northvolt is set to build a multibillion-dollar electric vehicle (EV) battery plant east of Montreal, marking the largest private investment in Quebec’s history. The mega-factory, Northvolt’s first outside of Europe, will cover 170 hectares and have an annual battery cell manufacturing capacity of up to 30 GWh in its initial phase, creating 3,000 jobs. The project, backed by $2.7 billion from Quebec and Ottawa, aims to bolster Canada’s position in the growing EV industry, aligning with global EV trends and green economy initiatives. However, concerns have been raised about noise, pollution, and housing related to the plant’s construction.
ZEV registrations hold steady in Q2 2023, according to new StatsCan data
In the second quarter of 2023, Canada registered 40,233 battery electric and plug-in hybrid electric vehicles, up from the previous quarter’s 30,533. However, the market share for zero-emission vehicles (ZEVs) remained at 8.6% due to overall new vehicle registrations. Pickup trucks and multipurpose vehicles saw the most growth in ZEV adoption. Quebec, British Columbia, and Ontario led in new ZEV registrations. Battery electric vehicles accounted for 70.1% of new ZEV registrations, while plug-in hybrid electric vehicles accounted for 29.9%. This data reflects the ongoing growth of ZEVs in Canada.
Canadian lithium miners in ‘prime position’ as EV battery race accelerates
Canadian lithium miners, including Rock Tech Lithium and Frontier Lithium, are gaining attention as key players in the electric vehicle (EV) battery supply chain. CIBC Capital Markets analyst Mohamed Sidibé predicts that North American lithium production could increase from 2% in 2022 to 7% in 2027. Sidibé notes Canada’s potential due to its lithium projects and clean energy sources. Frontier Lithium is highlighted for its high-grade deposit, while Rock Tech’s proximity to German automakers and partnerships position it well. Sidibé expects more industry investments and partnerships in the future.
Canada to recoup investments from EV plants in 20 years
Canada is expected to recoup its investments in electric vehicle (EV) plants within 20 years, according to reports. The country is making significant investments in the EV sector, and while it may take two decades to see returns, these efforts are aimed at supporting Canada’s EV industry and creating a sustainable future. The investments are part of a long-term strategy to boost EV manufacturing and adoption.
