Canadaisbuildinga‘miningtorecycling’electricvehiclesupplychain
Canada has all the ingredients to become the world’s most sustainable supplier of electric vehicles (EVs)
“Our aim is for Canada to be the greenest EV supplier of choice,” says Francois-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, and Canada’s chief EV marketer.
Canada has everything it needs to fulfil that ambition. It has the critical minerals needed for EV batteries. It has an established auto sector already assembling EVs. And it has one of the greenest energy grids in the world.
What it hasn’t had is the capacity to mass-manufacture completed lithium-ion batteries – until now.
“Our aim is for Canada to be the greenest EV supplier of choice,” says Francois-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, and Canada’s chief EV marketer.
Canada has everything it needs to fulfil that ambition. It has the critical minerals needed for EV batteries. It has an established auto sector already assembling EVs. And it has one of the greenest energy grids in the world.
What it hasn’t had is the capacity to mass-manufacture completed lithium-ion batteries – until now.
A watershed battery manufacturing facility
Reusability of the battery’s materials is going to be fundamental to the sustainability of the industry ”
Francois-Philippe Champagne
Canada’s Minister of Innovation,
Science and Industry
When NextStar Energy opens in early 2024, it will be Canada’s first large-scale lithium-ion battery factory, sprawling over 4.5 million square feet, employing 2,500 people, and producing 45 gigawatts per annum.
The project is a CAD $5 billion partnership between South Korean battery maker LG Energy Solution, and automaker Stellantis. Stellantis is a global automotive manufacturing company, made up of 14 storied brands, including Chrysler, Dodge, Jeep, Ram, Fiat and Alfa Romeo and recognized as one of the ” Detroit Three ” auto makers in North America. The facility marks a crucial stage in Stellantis’ objective for 50% of all its vehicle sales to be electric by 2030
It is also a milestone for Canada’s wider EV ecosystem. Mr. Champagne says NextStar Energy is “a watershed moment for Canada, cementing its place in the battery ecosystem, because it is combining both battery manufacturing and EV manufacturing with Stellantis.”
Speaking at an industry conference in October 2022, Danies Lee, CEO of NextStar Energy, said with its burgeoning EV ecosystem, Canada could “emerge as a new capital in the EV automotive era,” and that he hopes the factory will “attract more battery-related manufacturing to our community.”
The project certainly has local support, attracting funding from all levels of government. And the provincial hydroelectricity utility is planning to expand its network in the area, ensuring the factory runs on zero-carbon electricity.
A watershed battery manufacturing facility
When NextStar Energy opens in early 2024, it will be Canada’s first large-scale lithium-ion battery factory, sprawling over 4.5 million square feet, employing 2,500 people, and producing 45 gigawatts per annum.
The project is a CAD $5 billion partnership between South Korean battery maker LG Energy Solution, and automaker Stellantis. Stellantis is a global automotive manufacturing company, made up of 14 storied brands, including Chrysler, Dodge, Jeep, Ram, Fiat and Alfa Romeo and recognized as one of the ” Detroit Three ” auto makers in North America. The facility marks a crucial stage in Stellantis’ objective for 50% of all its vehicle sales to be electric by 2030
It is also a milestone for Canada’s wider EV ecosystem. Mr. Champagne says NextStar Energy is “a watershed moment for Canada, cementing its place in the battery ecosystem, because it is combining both battery manufacturing and EV manufacturing with Stellantis.”
Reusability of the battery’s materials is going to be fundamental to the sustainability of the industry ”
Francois-Philippe Champagne
Canada’s Minister of Innovation,
Science and Industry
Speaking at an industry conference in October 2022, Danies Lee, CEO of NextStar Energy, said with its burgeoning EV ecosystem, Canada could “emerge as a new capital in the EV automotive era,” and that he hopes the factory will “attract more battery-related manufacturing to our community.”
The project certainly has local support, attracting funding from all levels of government. And the provincial hydroelectricity utility is planning to expand its network in the area, ensuring the factory runs on zero-carbon electricity.
From mining to recycling
NextStar Energy is just one of the “significant investments,” Canada has managed to attract for its EV ecosystem, says Mr. Champagne. “We basically built a sector from scratch, from mining to recycling.”
In fact, Canada now ranks second only to China in BloombergNEF’s (BNEF) global lithium-ion battery supply chain ranking, released in November. The large-scale investments announced in 2022 combine with Canadian mineral resources, sustainability principles and innovation, which contribute to Canada’s acceleration in the ranking.
Canada has abundant deposits of all the minerals required for EV batteries.
Canada could “emerge as a new capital in the EV automotive era ”
Danies Lee
CEO of NextStar Energy
Due to complete in 2024, Snow Lake Lithium is set to be the world’s first all-electric lithium mine. Based in Manitoba, it will be 98% powered by the province’s zero-carbon hydroelectricity grid.
And Avalon Advanced Materials is planning a lithium hydroxide facility in Thunder Bay, Ontario.
But building the batteries is just one step in their lifecycle.
Speaking at the Toronto Global Forum 2022, Marissa West, President and Managing Director of General Motors (GM) Canada, highlighted the final stage, saying that the “reusability of the battery’s materials is going to be fundamental to the sustainability of the industry.”
GM recently completed a conversion of its Ingersoll Ontario plant into Canada’s first full-scale electric vehicle making facility. And in early December the BrightDrop Zevo 600, a series of fully electric commercial delivery vans rolled off the assembly line. Provincial and federal governments supported the project with over $500m CAD of investment, backing a growing market predicted to create jobs and stimulate the local economy. GM has also invested in Lithion Recycling to accelerate the development of its lithium-ion battery recycling process. Fellow Canadians Li-Cycle are already building facilities across North America and Europe. And Electra Battery Materials is building a fully integrated sustainable battery materials park in Ontario, which will include capacity for recycling lithium-ion batteries for use in new units.
Crucially, these projects are all based in Canada, minimizing the carbon miles between each stage of the EV battery lifecycle.
Due to complete in 2024, Snow Lake Lithium is set to be the world’s first all-electric lithium mine. Based in Manitoba, it will be 98% powered by the province’s zero-carbon hydroelectricity grid.
And Avalon Advanced Materials is planning a lithium hydroxide facility in Thunder Bay, Ontario.
But building the batteries is just one step in their lifecycle.
Canada could “emerge as a new capital in the EV automotive era ”
Danies Lee
CEO of NextStar Energy
Speaking at the Toronto Global Forum 2022, Marissa West, President and Managing Director of General Motors (GM) Canada, highlighted the final stage, saying that the “reusability of the battery’s materials is going to be fundamental to the sustainability of the industry.”
GM recently completed a conversion of its Ingersoll Ontario plant into Canada’s first full-scale electric vehicle making facility. And in early December the BrightDrop Zevo 600, a series of fully electric commercial delivery vans rolled off the assembly line. Provincial and federal governments supported the project with over $500m CAD of investment, backing a growing market predicted to create jobs and stimulate the local economy. GM has also invested in Lithion Recycling to accelerate the development of its lithium-ion battery recycling process. Fellow Canadians Li-Cycle are already building facilities across North America and Europe. And Electra Battery Materials is building a fully integrated sustainable battery materials park in Ontario, which will include capacity for recycling lithium-ion batteries for use in new units.
Crucially, these projects are all based in Canada, minimizing the carbon miles between each stage of the EV battery lifecycle.
Localizing the EV supply chain
As it stands, a typical EV supply chain includes minerals mined in Africa, batteries produced in China, and vehicles assembled in Canada and the U.S. Integrating the EV supply chain at home is crucial to EVs’ sustainability. Canada is arguably the only western country able to do so..
“You need five elements for an EV ecosystem, which Canada has in abundance,” says Mr. Champagne. “Talent, manufacturing capability, critical minerals, renewable energy, and access to market.”
Canada’s established automotive sector is ripe with talent and manufacturing capability. “We’ve seen a profound transferability of skills from internal combustion to electric,” says West.
Localizing the EV supply chain
As it stands, a typical EV supply chain includes minerals mined in Africa, batteries produced in China, and vehicles assembled in Canada and the U.S. Integrating the EV supply chain at home is crucial to EVs’ sustainability. Canada is arguably the only western country able to do so..
“You need five elements for an EV ecosystem, which Canada has in abundance,” says Mr. Champagne. “Talent, manufacturing capability, critical minerals, renewable energy, and access to market.”
Canada’s established automotive sector is ripe with talent and manufacturing capability. “We’ve seen a profound transferability of skills from internal combustion to electric,” says West.
Leading the charge on electric vehicles
With EV investments spanning “20, 30, even 50 years,” Canada also offers much-needed business security, says Mr. Champagne: “At a time when stability, predictability, and rule of law are in high demand and short supply, Canada stands out.”
The buzz is building around Canada’s EV ecosystem. “An auto manufacturer in Japan recently told me ‘there’s really something happening in Bécancour, Quebec,’” says Mr. Champagne. “Bécancour is a small city. If they’re talking about it in Japan, we must be onto something.”
But this is just the beginning, says Mr. Champagne, “Our vision is for Canada to produce the greenest vehicle in the world, with green steel, green aluminium, green batteries, and green semiconductors.”
