div classBodysc17zpet90 cdBBJodivpBy Steve Schererp
pOTTAWA Reuters – Canada is talking to a number of companies interested in setting up production in the electric vehicle EV supply chain, the industry minister said, as the government seeks to cut carbon emissions to net zero by 2050 and play a role in the shift toward greener cars.pdivdivdiv classBodysc17zpet90 cdBBJodiv
pThere are “very active discussions with a number of players” to develop an EV supply chain, Industry Minister FrancoisPhilippe Champagne said in an interview last week. p
pChampagne did not name the companies, only saying he spoke to representatives of Volkswagen last week, and has recently talked to executives from companies in the United States, Japan and Korea.p
pCanada is urging critical minerals producers and processors to scale up production. It has invested in EV projects through a multibillion dollar fund set up in 2020, and last month pledged C3.8 billion 3 billion over eight years to help boost the production and processing of critical minerals used for EVs.p
pCanada and the United States want all sales of passenger vehicles to be zero emissions by 2035.p
pIn March, Stellantis , the parent of Jeep and Chrysler, said it would build an EV battery JV with South Koreas LG Energy Solution in Windsor, across the border from Detroit, which Champagne called a “watershed moment.”p
pBLESSED WITH KEY MINERALSp
pThe government has met with industry players to establish a strategy it hopes will make Canadian minerals, like lithium, cobalt and nickel, key to EV production in North America, according to chief executives in the sector and the minister.p
pThe plan will be completed this year, government sources said without providing details.p
pIt could not happen fast enough. Electric carmakers Rivian Automotive Inc and Tesla this year warned of future battery supply constraints due to a lack of raw materials. p
pCanadian critical mineral miners like Nouveau Monde Graphite Inc, Nemaska Lithium Inc, Electra Battery Materials Corp , and Avalon Advanced Materials Inc want to meet the demand. p
pNouveau Monde aims to scale up its production of graphitebased anode material to 45,000 tonnes per year by 2025, according to a spokeswoman. p
pNemaska is focusing on construction of its Whabouchi lithium mine in Quebec and a conversion plant, with the aim of producing about 34,000 tonnes per year, CEO Spiro Pippos said.p
pElectra is expanding a refinery for batterygrade cobalt and nickel sulfate in Temiskaming Shores, Ontario, and aims to produce materials needed for lithiumion batteries by 2025, according to CEO Trent Mell. p
pAvalon, which plans to refine lithium in partnership with a unit of Indias Essar Group in Thunder Bay, Ontario, said support from different levels of government was key. p
p“What weve needed all along is to show the potential endusers in the manufacturing space that the province is willing to help create the supply chains on the critical materials they need in their technologies,” Avalon CEO Donald Bubar said.p
pBut BHP Group Ltd, the worlds largest listed miner that moved its copper and nickel exploration offices to Toronto last year, needs help to meet emissions targets in order to deliver critical minerals.p
p“When I look at Canada, I think net zero by 2050 is fantastic, but I‘ve got a bigger challenge,” Rag Udd, BHP’s president of Minerals Americas, said on Monday in Toronto. “How do we get those lowemission power sources？ How do we work with the provinces to actually induce that？” p
pWilliam Adams, head of battery materials research at British commodities price reporting group Fastmarkets, has been warning of mineral shortages if production is not scaled up.p
p“Canada is blessed… It‘s got nickel, it’s got cobalt, and its got lithium,” Adams said. “But like everywhere else, it needs a lot more investment in all these projects.”p
p1 1.2878 Canadian dollarsp
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pp Reporting by Steve Scherer, with additional reporting by Denny Thomas in Toronto Editing by Marguerita Choyp
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