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Highlights
- Prime Minister Justin Trudeau and US President Joe Biden met in February this year and pledged to create a North American supply chain of EV batteries.
- In March, the US Department of Commerce said it was looking at helping battery manufacturers expand into Canada.
- In November, Tesla opened a factory to produce battery-making equipment.
One thing automakers have found impossible to ignore is the seemingly impending electrification of transport systems. To this end, lithium is worth its weight in gold, figuratively speaking. Canada sits on massive deposits of lithium.
Lithium has been given monikers such as “white petroleum” or “the new gasoline” and Canada is thought to hold about four per cent of the world’s lithium. So, let's take a look at Canada’s lithium market and prospects.
Canada’s EV battery developments in 2021
In January this year, the National Research Council of Canada identified lithium mining as an emerging market opportunity as it sought to expand the country’s battery manufacturing capabilities, and looking back it certainly seems the effort was met with encouragement.
Prime Minister Justin Trudeau and US President Joe Biden met in February this year and pledged to create a supply chain on the continent for electric vehicle (EV) batteries. Lithium, like all alkali metals, is highly combustible, and its transportation over vast distances are not encouraged in the industry.
In March, it was reported that the US was looking at helping battery manufacturers expand into Canada in a bid to counter Chinese competition. In early November, Tesla opened a factory to produce battery-making equipment.
Also read: 5 Canadian lithium stocks to buy as Quebec attracts EV makers
Given the need for energy security, the US Department of Commerce stressed the need for a regional supply chain, like Asia has, and Europe is in the process of accomplishing. Tesla were among several companies who were present at the March meeting.
Image source: © 2021 Kalkine Media
Canada’s lithium market and prospects
Canada’s enviable amount of lithium is locked in the Canada Shield, a vast region of Precambrian igneous and metamorphic rock shield.
Some experts say that the geological nature of the shield does not make for easy mining; however, as the National Research Council of Canada has pointed out, the nation is very accomplished when it comes to mining.
The International Energy Agency (IEA) estimates that from four million electric vehicles in 2018, the world will have 120 million electric vehicles in 2030.
Also read: 2 Canadian lithium stocks to buy before 2022
What to expect from Canada's Lithium Market in 2022 ?
Bottomline
Canada, with a global reputation for commitment to a low-carbon economy and a relatively stable market plus expertise in sustainable development, is poised to grab a huge piece of the electric vehicle manufacturing pie. Its lithium battery manufacturing abilities made a few leaps and bounds this year, but next year could see this really accelerate.
