EV Batteries

Without batteries, there are no electric vehicles. And without vital components of the supply chain—mining, production of cathodes and anodes, battery manufacturing, and used-battery recycling—EV batteries could not be produced at scale. With direct access to growing markets in the US and Europe and with global OEMs committed to manufacturing EVs in Canada, opportunity for investment in Canada resides in all segments of the supply chain. Global investors take note: the most profitable route to a net-zero future begins and ends with Canada’s truly circular, sustainable EV battery supply chain.

Canada has one of the richest endowments in the world for the cathode and the anode materials that you need for batteries. So, in a growing EV market, it would only make sense that you would want to set up that supply chain around the place where the materials are mined.

Trent Mell, CEO, First Cobalt Corp

Cathode and anode manufacturing, and chemical precursors

Thanks to Canada’s abundant and accessible raw materials, cathode manufacturing in Canada presents a lucrative opportunity for investors. Canada has manufacturing expertise, competitive costs and advanced R&D projects that make it the ideal place for cathode and anode production to supply high-growth North American and European battery markets. Leading companies are developing innovative mineral processing that takes critical minerals and produces materials essential to cathodes (about 63% of an EV battery’s total cost) and anodes.

Battery manufacturing

Canada is the destination of choice for battery cell manufacturers with an environmental, social and governance (ESG) mindset. With the world’s largest automakers pledging to ethically source batteries and build EVs in Canada, it makes sense for battery manufacturers to locate in proximity to the raw materials and other supply chain inputs. Technological innovations such as Scale AI’s investments in Smart Supply Chains featuring traceability offer both economic and ESG advantages. Clean, sustainable, and affordable renewable energy adds to Canada’s appeal.

Battery recycling

Canada is part of a North American lithium battery recycling market that could reach $3.2 billion by 2023. The largest battery recycling facility in North America is owned and operated by a Canada-based company, Li-Cycle, and companies here are well-known for R&D and early commercialization of recycling processes. As a leader in battery recycling technology, Canada is in a unique position to scale up and offer global markets a sustainable place to recycle used batteries and to source a secure supply of recycled materials.

Investing in EV Batteries in Canada

Renewable energy

EVs are all about renewable energy. So it makes sense to locate EV battery operations in Canada–a place that offers outstanding renewable energy advantages.

Canada is the world’s third largest producer of hydroelectricity and gets 67% of its electricity from renewable sources. Not only is renewable energy plentiful, but electricity is also affordable. The province of Quebec has some of the lowest utility costs in North America, with industrial users paying only 3.3 cents per kilowatt hour (c/kWh). The provinces of Manitoba and British Columbia offer utility costs of 3.76 c/kWh and 5.67 c/kWh, respectively.

Canada’s total renewable energy production

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Canada’s total renewable energy production
Hydro	67.5%
Solid biomass	23.3%
Wind	5.2%
Ethanol	1.8%
Renewable municipal waste and landfill gas	0.8%
Solar thermal	0.5%
Biodiesel	0.2%
Solar photovolotaic	0.1%
Tidal	0.1%

Source: Natural Resources Canada, 2020

Incentives

Part of the federal government’s 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.