Battery investment by LG Energy Solution and Stellantis anchors Canada’s EV supply chain

Countries the world over are vying to attract investment in their domestic battery and electric vehicle (EV) industries.  

But as the only country in the Western Hemisphere with the potential to form a true start-to-finish electric vehicle supply chain, Canada has a leg up on the competition.   

Global businesses have taken note, recognizing Canada as a destination of choice for investment in this emerging industry of the future. In the past two years alone, auto manufacturers Ford, General Motors and Honda announced plans to invest billions to build electric vehicles here in Canada.  

The news was amplified yesterday as Korea-based LG Energy Solution in a joint venture with Netherlands-based auto manufacturer Stellantis N.V. announced plans to build a major electric vehicle battery manufacturing facility in Windsor, Ontario. 

The joint venture will see a total investment of over $5 billion and is expected to create 2,500 well-paying jobs for Canadians. It is the largest investment ever in Canadian battery technology or manufacturing, positioning Canada as a global leader in the most fundamental transportation shift since the advent of the internal combustion engine.

Canada’s unmatched EV supply chain

Canada already has all the critical minerals – including lithium, cobalt, and manganese – needed to produce batteries for electric vehicles. Now, we will not only have all the minerals that batteries for electric vehicles require, but also the expertise and the facilities to build those batteries here in Canada, leading to high value-add jobs and contributing to the development of the Canadian innovation ecosystem.   

Canada also enjoys the presence of five of the world’s leading automakers on its soil, allowing for a smooth transition from the manufacture of gas-powered cars to the assembly of carbon-reducing electric vehicles. Combined with its leadership in the emerging industry of battery recycling, Canada has all the ingredients required to form a circular and sustainable life cycle for electrified transportation. 

But while transitioning to electric vehicles is key to supporting low-carbon emission initiatives, it is clear the new machines have a waste problem. Fortunately, Canada has the solution. Already, Canadian firms are leading the way in developing solutions for batteries, recovering the vast majority of the product’s material, and closing the loop on electric vehicle waste in the process.   

With close to 30% of carbon emissions coming from the transportation sector, the development of a start-to-finish electric vehicle supply chain stands to be one of Canada’s greatest contributions in the fight against climate change.  

Invest in Canada: seeking out projects that benefit Canadians

Canadians want more to be done in the fight against climate change and to protect our environment for future generations.  Foreign investments like this one help spur the growth of green industries – like batteries and electric vehicles – that often require significant financial investment. 

Like many decision makers and industry insiders, we at Invest in Canada know Canada has been ready for this kind of announcement for some time. As the country’s global investment attraction and promotion agency, it is our job to leverage Canada’s assets and to promote Canada as the destination of choice for global companies in order to secure job-creating investments such as this one.  

Invest in Canada identified and shepherded LG Energy Solution through the entire process, working collaboratively with all levels of government from the outset of the process to secure this major investment in the future of Canada’s automobile industry.  

Moving forward, we will build on yesterday’s announcement to show the world that Canada is the destination of choice for investments in battery and electric vehicle manufacturing.   

Laura.Stilwell

Source link