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Canada Forges a New Path For EV Supply Chains!
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- Battery investments are a necessary first step, according to the ministry.
- Projects are aimed at assisting Canada in becoming a leader in EVs.
GM and Posco Chemical Co Ltd. announced a $400 million investment in a new Quebec plant to create cathode active material, which accounts for around 40% of the cost of electric vehicle battery cells, on Monday. BASF SE, a German chemical giant, said last week that it has purchased a property in Quebec for a battery materials factory, making use of the province’s hydroelectric power to lessen its carbon impact.
According to Champagne, Canada has been positioned itself to be a significant supplier of green aluminum and steel, and it is now focusing on battery components.
To attract investors, the government intends to use its supply of crucial minerals needed for electric cars, such as nickel, lithium, and graphite.
Because the car sector employs half a million people and contributes to 10% of Canada’s industrial output, a shift from traditional combustion engines to electric and green vehicles is a serious problem for the government. “Multibillion-dollar investments” in these subsectors over the next several years will help “create a new sector that didn’t exist in Canada,” Champagne said.
He stated, “We have talented employees, skills, know-how, and competence.” “We all know we’re headed to EVs, so this is guaranteeing this employment for future generations.”
The government of Justin Trudeau aims to release its emissions reduction plan this month, laying out how it will achieve its objective of reducing emissions by 40 to 45 percent below 2005 levels by 2030. The proposal is likely to include a wide variety of industries, including oil and gas, as well as transportation, which account for half of all emissions.
Against the backdrop of Russia‘s invasion of Ukraine, rising energy costs, and concerns about global oil and gas supplies, Francois-Philippe Champagne said that Canada stood out as a “really attractive jurisdiction,” adding that European and Japanese auto manufacturers are looking to expand their operations in the nation.