In shadow of U.S. protectionism, Canada in heated battle for EV battery manufacturing

[billwanhua]

In shadow of U.S. protectionism, Canada in heated battle for EV battery manufacturing

Government negotiations with at least three companies looking to make major battery-building investments have reached a critical stage, sources familiar with the talks confirmed on Wednesday

www.theglobeandmail.com

The rebate plan, which Ottawa is lobbying Washington to change in recognition of the auto sector’s heretofore continental integration, is making it more difficult for Canada to compete for new EV investments. It has also given extra urgency to Canadian efforts to win those deals and lock in Canada’s role in the supply chain.

Battery manufacturing is an area of particular focus. Anticipating an increase in North American demand for EVs bolstered by government incentives and regulations aimed at reducing greenhouse gas emissions, auto makers are deciding where to make batteries. Those plants will serve as anchors for supply-chain components, and influence future decisions about where EVs are made.

“Any of the major assemblers in North America is probably looking at a maximum of two battery plants,” said Flavio Volpe, the president of Canada’s Automotive Parts Manufacturers’ Association. “And once they decide on where the first and second ones go, the next investment window probably won’t open for another 10 years.”



So far, Canada has been frustrated in its efforts to win those investments. Most recently that included a US$1.3-billion Toyota battery plant that went to North Carolina.