EV Supply Chain
Battery electric vehicles (EV) are a critical element of the strategies that countries are adopting to meet their pledges to reach net-zero by 2050. Investors that seize the potential of a new supply chain for battery electric vehicles will enjoy higher profitability and contribute to the fight against climate change. Canada is well-positioned to assume leadership across all 5 segments of the EV battery supply chain: mining and mineral processing; cathode and anode manufacturing, and chemical precursors; battery manufacturing; electric vehicle manufacturing and parts supply; and battery recycling.
Key distinguishing factors are the environmental footprint of industry, the availability of cheap but clean electricity, a technically skilled labor force, and incentives driving battery demand.
Mining and mineral processing
Canada’s supply chain advantage begins with an abundance of battery minerals. Canada is the only country in the Western Hemisphere that has all the critical minerals required to manufacture EV batteries: graphite, nickel, aluminum, copper, lithium, cobalt, manganese, molybdenum and rare earth elements. Canada currently ranks 1st in North America and 4th in the world for raw material capacities in the battery supply chain and is expected to rise to 3rd by 2025.
Cathode and Anode Manufacturing, and Chemical Precursors
Thanks to Canada’s abundant and accessible critical minerals, and the price of cathodes (about 63% of an EV battery’s total cost), cathode manufacturing in Canada presents a lucrative opportunity to supply high-growth North American and European markets. Canada is powering the next generation of lithium-ion batteries through some of the most-watched battery R&D projects in the world and leading companies are developing innovative mineral processing to produce battery materials.
Battery Manufacturing
With the world’s largest automakers pledging to ethically source minerals and other supply chain inputs here, Canada emerges as the destination of choice for battery cell manufacturers with an environmental, social and governance (ESG) mindset. Clean, sustainable and affordable energy adds to Canada’s appeal, as do technological innovations such as Scale AI’s investments in Smart Supply Chains featuring traceability that offer both economic and ESG advantages.
Electric Vehicle Manufacturing and Parts Supply
Ford, GM and Stellantis are already investing billions to build electric vehicles in Canada. With more than a century of experience in automotive manufacturing and an ecosystem of part suppliers, Canada offers a ready-made vehicle supply chain. The industry is cost-competitive and Canada’s proximity to the large U.S. market is an unmatched asset. The Canadian industry also includes substantial electric bus manufacturing, through Volvo Group’s Nova Bus subsidiary and New Flyer, North America’s largest producer of transit buses and motorcoaches.
Battery Recycling
Recycling of used batteries plays an essential role in ensuring the supply chain remains sustainable. As the North American leader in battery recycling technology, Canada is in a unique position to scale up and offer global markets a sustainable place to recycle batteries and secure a stable source of recycled metals for new batteries. The largest lithium-ion battery recycling facility in North America is owned and operated by a Canada-based company, and Canada is poised to build on such examples to maintain and build its battery recycling investment advantages.
Understanding Canada's EV battery supply chain in 60-seconds
Canada’s battery and electric vehicle industry offers a truly circular supply chain—from mines to manufacturing to recycling—and presents opportunity for investment in all sections of this chain.
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Investing in batteries and electric vehicles in Canada
Market access
Canada has 14 free trade agreements with 49 countries, representing approximately 1.5 billion people and 63% of the worlds GDP. Canada’s ports and infrastructure in both the Atlantic and Pacific oceans are well-equipped to meet current and future demand. Aided by tariff-free access to the U.S. market for motor vehicles through CUSMA, Canada is expected to see its ranking for EV demand rise to 6th in the world from its current 11th place.
Incentives
Part of the Strategic Innovation Fund, the Net Zero Accelerator fund allocates $8 billion over 7 years to expedite decarbonization projects with large emitters, scale-up clean technology and accelerate Canada's industrial transformation. Additional support for innovative projects across all sectors includes $1 billion, on a cash basis, to support private sector investment in cleantech projects.
The Scientific Research and Experimental Development (SR&ED) program provides income-tax credits and refunds for expenditures on eligible R&D activity in Canada.
Canada offers progressive tax incentives with the Accelerated Capital Cost Allowance for businesses to write off 100% of the cost of machinery and equipment used for the manufacturing, processing of goods and production of renewable energy.
Canada’s Global Skills Strategy allows employers to bring in highly skilled talent from abroad in as little as two weeks.
Leading research institutes
- ACE Climatic Aerodynamic Wind Tunnel at the Ontario Tech University
- The Canadian Light Source Synchrotron at the University of Saskatchewan
- Centre for Excellence in Mining Innovation (CEMI)
- Corem
- Jeff Dahn Research Group & Tesla Partnership at Dalhousie University
- Hydro Quebec’s Center of Excellence in Transportation Electrification and Energy Storage
- NORCAT
- Saskatchewan Research Council
- The University of Toronto’s Electric Vehicle Research Centre (UTEV)
- Waterloo Centre for Automotive Research (WATCAR)
You’re in good company
Recent Investment Announcements
Nova Bus
Nova Bus, part of the Volvo Group (Sweden) announced a total investment of $184 million to modernize its EV manufacturing facilities in Saint-Eustache and Saint-François-du-Lac, Quebec. The Government of Canada is providing $15 million through the Strategic Innovation Fund.
Piedmont Limited
Piedmont Limited (Australia) invested $14.5 million in Sayona Mining’s lithium project in Quebec with a supply agreement for 50% of the mine’s lithium spodumene production.
General Motors
General Motors announced a planned investment of $1 billion to transform its CAMI plant in Ingersoll, Ontario into a hub for producing electric commercial delivery vans.
Stellantis
Stellantis (formerly Fiat Chrysler Automobiles and PSA Group) announced it will invest up to $1.5 billion in a state-of-the-art multi-energy vehicle platform at the Windsor Assembly Plant that will enable the assembly of both plug-in hybrid vehicles and battery electric vehicles, creating up to 2,000 jobs by 2024.
Ford
Ford announced that it will invest $1.8 billion to produce battery electric vehicles in Canada. Ford’s Oakville, Ontario Assembly Complex will be converted from an internal combustion engine (ICE) site to also become a BEV manufacturing facility.
Corvus Energy
Corvus Energy (Norway) is investing $20.8 million in the city of Richmond, British Columbia to expand its energy storage system (ESS) manufacturing plant.
Tesla
Tesla Inc. (US) acquired Canadian battery specialist, Hibar Systems, for an undisclosed amount.
Vale
Brazilian mining company Vale is constructing a $2.2 billion nickel mine in Newfoundland and Labrador. This expansion of the company’s existing Voisey’s Bay mine is expected to prolong operations by 15 years, creating 1,700 jobs.