The U.S. has grand ambitions to conquer the global EV market — it can’t win without Canada – – by Ryan Castilloux (Financial Post – June 16, 2021)

https://financialpost.com/

Ryan Castilloux is managing director of Adamas Intelligence, which provides research on strategic materials and minerals.

A US$174-billion U.S. plan to spur domestic production and sales of U.S.-made electric vehicles while bolstering domestic supply chains, from raw materials to parts, dovetails with allies Canada and Australia’s ambitions to become leading suppliers of raw materials to parts.

The plan is part of the massive US$2-trillion spending plan unveiled by U.S. President Joe Biden in March, that aims at creating millions of “good jobs,” rebuilding the nation’s infrastructure, and positioning the U.S. to “out-compete China.”

From a raw materials perspective, there are four main facets of interest for the Canadian auto sector in the U.S.’s grand ambition to win the EV market.

Firstly, the plan aims to electrify 20 per cent of the nation’s school bus fleet by 2030, which would amount to roughly 100,000 buses. Secondly, Biden aims to electrify the entire U.S. federal vehicle fleet by 2030, which comprise nearly 650,000 passenger vehicles, mail vans, and light, medium and heavy special-purpose vehicles.

Thirdly, the plan aims to direct US$100 billion as incentives for buyers of U.S.-made EVs powered by U.S.-made batteries. With a rebate of US$10,000 to US$12,500 per vehicle, this would help incentivize the sale of millions of EVs over the coming decade, while fuelling domestic demand for lithium, nickel, cobalt, manganese, aluminum, graphite, copper, rare earth elements and other raw materials used in EV batteries and motors.

For the rest of this article: https://financialpost.com/commodities/energy/electric-vehicles/the-u-s-has-grand-ambitions-to-conquer-the-global-ev-market-it-cant-win-without-canada?utm_term=Autofeed&utm_medium=Social&utm_source=Twitter#Echobox=1623922952

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