Canada’s new economic engine
Last week, Clean Energy Canada released a new report with the Trillium Network for Advanced Manufacturing on the potential size of the battery supply chain in Canada. Our modelling found that, if Canada plays its cards right, a domestic EV battery supply chain could support up to 250,000 jobs by 2030 and add $48 billion to the Canadian economy annually. And with the U.S.’s new electric vehicle tax credit requiring that EVs and their batteries be made in North America, Canada’s EV battery opportunity is very much in the spotlight.
In addition to proximity to the U.S., Canada has a host of natural advantages, including the right metal and mineral resources, an existing auto manufacturing industry, and world-leading battery recycling companies. As Clean Energy Canada’s Merran Smith told CBC, it also has a clean electricity grid, enabling lower carbon mining and manufacturing. Indeed, Canada has already seen a number of big battery investments, including a $5 billion investment from Stellantis and LG Energy Solution to build a battery factory in Windsor that will employ 3,200 workers.
But as Clean Energy Canada’s Joanna Kyriazis wrote in an op-ed for the Toronto Star, “despite some solid investments, the success of Canada’s EV battery supply chain—and the hundreds of thousands of future jobs it could support—is still largely dependent on swift government action.” In a scenario where no additional government action is taken, Canada’s battery supply chain would create just 60,000 jobs and contribute only $12 billion in GDP—fulfilling only about a quarter of both its jobs and GDP potential. Accordingly, the report identifies six ways in which Canada should focus its efforts to meet the battery-building opportunity. Read the report and sign up for our upcoming webinar to find out more.