Canada is home to one of the world’s largest automobile manufacturing sectors, is a globally recognized leader in mining, mining finance, and metallurgical engineering, and has a wealth of clean energy. This gives us the opportunity to play an important role in the rapidly expanding global electric vehicle sector.
In recent months, we have seen increased investment from electric vehicle manufacturers, battery companies, and tech startups, some of which come from generous grants from the federal and provincial governments. multinationals like general motors, Ford, LG, BASF Y Stellantis have committed billions to expand their electric vehicle operations in Ontario and Quebec.
Those agreements represent an encouraging start, but many difficult questions remain. Should Canadian governments try to support individual companies or sectors? Can Ottawa ensure that Canadian electric vehicle supply chain companies gain access to the US market? And how should we shape research and development (R&D) policies that stimulate electric vehicle innovation but also support the commercialization of Canadian-owned intellectual property?
Perhaps the most salient question is this: Will Canadians manufacture electric vehicles and their components, as we have with cars and light trucks for decades, or will we simply consume electric vehicles produced elsewhere, as we do with laptops and most other electronic devices? other consumer electronics?
The answers to these questions will appear on business pages for the next 15 years. As the world experiences rising temperatures and the related urgency to reach the Paris GHG targets, Canada and other countries they have promised phase out the internal combustion engine by 2035, thereby dramatically accelerating demand for electric vehicles, battery minerals, charging infrastructure, and clean networks.
To ensure Canada finds its place in the global electric vehicle manufacturing supply chain, Canadian policymakers need to focus on four key goals.
Develop an EV workforce. Both domestic companies and foreign investors will only establish operations in Canada if they can be sure to hire the technicians, programmers and chemical/metallurgical engineers that will be in demand for the electric vehicle manufacturing value chain.
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Build genuinely collaborative relationships with First Nations communities. Canada has the valuable and sought after mineral deposits necessary for the production of EV batteries. But miners looking to exploit lithium, cobalt or copper reserves must not only consult with First Nations, but also enter into truly meaningful partnerships and wealth-sharing arrangements.
Strategically prioritize the allocation of public resources. Industry groups and policymakers need to develop a common understanding of how and where to direct investment, paying particular attention to global market dynamics, the need for a highly flexible and agile approach, and a parallel focus on support. to R&D and early-stage companies.
Update trade agreements to ensure access to the North American market. The enduring lesson of 1965 automobile pact it was the completely reciprocal relationship between the United States and Canada. Our trade negotiators fight against american protectionism which extends to a variety of sectors, including the electric vehicle supply chain. Canadian governments must coordinate their efforts to ensure that the US removes barriers if it wants access to Canada’s natural resources.
To ensure Canada’s place in the global #EV manufacturing supply chain, lawmakers must focus on goals like building a skilled workforce and partnering with #FirstNations communities, writes @JohnLorinc #ZeroEmissions
The stakes are high: Canada’s auto sector contributed $12.5 billion to GDP in 2020 and directly employed more than 117,000 workers, as well as an additional 370,000 in aftermarket companies and car dealerships. Five global manufacturers (Stellantis, Ford, GM, Honda and Toyota) assemble vehicles in Ontario and these plants are at the center of a network of about 700 parts suppliers.
Yet this auto manufacturing ecosystem faces an existential threat because electric vehicles rely on far fewer powertrain components and technologies that have been largely developed elsewhere. To date, no electric vehicles are made here except for two hybrids (Chrysler Pacifica and Lexus RX450), while China dominates global production of electric vehicle batteries and buses.
Whether Canada carves out a significant place in this highly dynamic global industry will depend on many factors, from innovative R&D to tough negotiating trade deals. Policymakers and other Canadians must also not forget the goal of the exercise, which is to decarbonize mobility, a goal that involves reworking our own networks, discouraging sprawl, and developing technologies that allow other countries to do the same.
Canada’s role in the electric vehicle revolution must be about industrial development, but also about equity, innovation and sustainability. One cannot be successful without the others.
John Lorinc is a Toronto-based journalist who writes regularly on climate, cleantech and green urban development for Corporate Knights, Spacing and The Globe and Mail. He is the author of the IEC report Pick a Lane: Canada and the EV Opportunity