Critical Minerals and Energy Intelligence

Canada Raising its Battery Game?

Thanks to the US auto industry business model, Canada’s role in automaking is worth a cool $10 billion per year. As the world shifts gears and powers towards an EV future, the Canadian government has decided it wants to own a chunk of the EV supply chain too.

Just this week, GM and South Korea’s Posco Chemical announced a $400 million investment for a new plant in Quebec. The goal? Crank out cathode active material—aka the stuff that makes up about 40% of an EV battery’s cost. Also, BASF, a German chemical company, just bought land in Quebec for its own battery materials facility. Why Quebec? Easy: cheap and clean hydroelectric power.

Canada’s Industry Minister, François-Philippe Champagne, commented that “This is Canada staking its claim in the North American EV scene.” On the surface, that certainly sounds good. After all, Canada is host to all sorts of critical mineral deposits including nickel, lithium, cobalt, and graphite. Here’s the thing though: Champagne hinted that at additional multi-billion-dollar investments over the next few years but when you look at government support for some of the major, advanced nickel deposits, it’s been lacking. Canada’s ruling party loves its grand statements but the country’s critical minerals production is a fraction of what it could be. Until that changes, it’s hard to take government statements at face value.

Anthony Milewski

Chairman, Nickel 28 Capital

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