Clean Energy Canada | Industry group responds to Stellantis and other electric vehicle battery supply chain announcements
March 23, 2022

OTTAWA — Several Canadian Battery Task Force members have made statements in response to the recent series of electric vehicle battery supply chain developments in Canada. That includes today’s announcement that Stellantis and LG Energy Solutions, together with the federal, Ontario and Windsor governments, will invest over $5 billion in Canada’s first large-scale battery manufacturing plant. 

The Canadian Battery Task Force is an industry-led initiative created to deliver advice to Canadian governments on how to develop a domestic battery supply chain. The task force includes representatives from: Clean Energy Canada, Accelerate, the Mining Association of Canada, Unifor, the Automotive Parts Manufacturers’ Association, Electric Mobility Canada, E-One Moli Energy Canada, Battery Metals Association of Canada, Propulsion Québec, Investissement Québec, Lion Electric, General Motors Canada, the Transition Accelerator, Magna International, Trillium Network for Advanced Manufacturing, Blue Solutions Canada, and the Business Council of Canada (observer status). 

STATEMENTS

“Canada ranks among the world’s top countries when it comes to battery supply chain potential, but it has struggled to turn that potential into reality—until now. Recent decisions by General Motors and BASF to bring cathode production to Quebec and today’s announcement that Stellantis will build a battery cell manufacturing plant in Ontario indicate that Canada will play a pivotal role in accelerating the electrification of North America’s automotive industry. 

“We commend federal and provincial governments for their hard work and collaboration in landing these anchor investments, and we look forward to further efforts to build out a clean, world-class EV and battery industry in Canada.” 

—Joanna Kyriazis, Clean Transportation Program Manager at Clean Energy Canada & Co-Chair of Canadian Battery Task Force 

“With these anchor investments, we’ve never been closer to realizing the opportunity for developing a battery supply chain in Canada. Canada holds massive potential and we must build on the momentum from these announcements to develop a comprehensive ZEV supply chain strategy to chart our path forward. In doing so, Canada will ensure its global competitiveness and deliver value-added activity across the entire supply chain.”

—Moe Kabbara, Senior Advisor at Accelerate, Senior Consultant at Dunsky & Co-Chair of Canadian Battery Task Force 

“Stellantis’s choice to build its battery plant in Canada is the latest in an increasing number of investments in our growing battery and EV supply chain. Fuelled with some of the lowest carbon critical minerals available, Canada’s potential to host the lowest carbon-intensity battery and EV supply chain in the world on a life-cycle basis is being realized. The world wins on climate when Canada wins on critical minerals, battery and EV investments.”

—Brendan Marshall, Vice President, Economic and Northern Affairs at the Mining Association of Canada

“The recent string of domestic battery-related announcements by Stellantis, GM and others is an early sign that, with ongoing government support and strategic focus, Canada can reclaim its status as an auto manufacturing powerhouse. The thousands of net new jobs created by these investments will allow workers in Canada to not only build the critical products industry needs, but have a chance to share in the prosperity of a future, sustainable economy.” 

—Angelo DiCaro, Director, Research Department at Unifor

“This is great news for Canada. The Battery Supply Chain is all here with clean energy to power it. 

“Stellantis made a smart choice in selecting Windsor, Canada’s automotive capital with a successful 120-year track record. Today’s announcement is a cornerstone in the foundation to build the next 100 years of success.

“Congratulations to the community leaders in Windsor and to the federal and provincial governments for their collaboration to win this investment.”

—Warren Ali, Senior Vice President, Innovation at Automotive Parts Manufacturers’ Association

“Thanks to its critical minerals, world class research teams and qualified workforce, Canada has the potential to become a global player in the EV world. We congratulate the federal and provincial governments for their success in materializing this potential into reality with recent announcements in EV assembly and battery component manufacturing. EMC will be there to support Canada in its goal to create high-quality sustainable jobs all across the country.”

—Daniel Breton, President and CEO of Electric Mobility Canada

“The Stellantis-LG battery plant announcement for WindsorEssex is fantastic news for Canada, the lithium-ion industry and the exponential growth of the EV market. With low carbon energy and vast battery minerals in Canada, a large-scale cell manufacturer plays a leading role in jump-starting the development of the upstream supply chain.  E-One Moli Energy looks forward to continuing investment in Canada with support from all three levels of government by further developing e-Mobility solutions beyond EV.”

—Frank So, Executive Vice President at E-One Moli Energy (Canada) 

“Canada has a wealth of battery metal resources, a talented workforce and an innovative culture. Numerous cutting-edge companies are now leading the development of a robust pan-Canadian value chain to support energy transition and electrification. This investment further supports the development of a battery industry in Canada by affirming the growth of domestic battery manufacturing capacity and providing added market pull for the broader sector. The BMAC community is excited to welcome Stellantis and LG Energy Solution to Canada’s growing lithium-ion battery ecosystem.”

—Matt Beck, Treasurer at the Battery Metals Association of Canada

“Propulsion Québec, as a member of the Battery Task Force, welcomes the series of battery supply chain announcements made in the past few weeks. Implanting new major battery plants (Stellantis, GM and BASF) across Québec and Ontario not only materializes the ambition of the federal and provincial governments but also reflects the very high potential of our ecosystems, resources and industries. If we want to build a world-class EV industry in Canada, it is essential that the federal government considers the whole battery value chain including: transformation, cells manufacturing and processes, recycling and end-of-life battery management, not only the extraction of critical minerals from Canadian soils.”

—Sarah Houde, CEO of Propulsion Québec

“Canada is blessed with an abundance of critical minerals, has access to affordable clean electricity, and is home to a world-class automotive manufacturing base. Recent announcements of new EV battery facilities demonstrate the importance of public-private partnerships in strengthening Canada’s position in the North American auto sector and becoming a major global supplier and processor of critical minerals for zero-emissions vehicles. Seizing this opportunity means more well-paying jobs for Canadians and a growing economy that benefits our communities.”  

—Michael Gullo, Vice President, Policy at Business Council of Canada

KEY FACTS

• The global market for batteries is expected to reach over $360 billion over the next decade. By 2040, the International Energy Agency projects demand for critical minerals to grow by at least 30 times to meet rising demand for batteries for use in EVs and storage.

• Canada ranks in the top 5 countries on battery supply chain potential, largely due to its access to key metals and minerals. 
• On March 4, 2022, BASF announced it had signed an agreement to secure land for a new cathode active materials (CAM) and recycling site in Becancour, Quebec. The site will be capable of producing up to 100 kt CAM per year. BASF is aiming to commission the project by 2025.
• On March 7, 2022, General Motors and POSCO Chemical announced a new partnership with the governments of Canada and Quebec to build a $500-million facility to produce cathode active material for GM’s Utium batteries starting in 2023. The facility will be built in Becancour, Quebec, with construction beginning immediately.
• On March 23, 2022, Stellantis and LG Energy Solution Ltd. announced a $ investment to build Canada’s first large-scale electric vehicle battery plant in Windsor, Ontario—the largest investment in Ontario’s automotive history. The facility will create 2,500 jobs and have the capacity to produce 45 GWh of battery cells annually for the North American market. 

RESOURCES

Op-ed | To become a major player on the global battery stage, Canada must act fast

Report | Turning Talk into Action: Building Canada’s Battery Supply Chain