Canada Emerges as Cornerstone of North American Battery Supply Chain – by James Frith (Bloomberg News – October 19, 2021)

A North American Battery Supply Chain Emerges

Hi all, James Frith here again this week. I want to look at how Canada is re-positioning itself to take advantage of the growing electric vehicle supply chain, after years of overlooking the battery industry.

Despite having all of the critical ingredients for lithium-ion batteries — nickel, cobalt, lithium, graphite — Canada doesn’t have any EV cell or component manufacturing; and it has only about 10% of the battery demand of the U.S.

Combined with a lack of government support for the battery supply chain, it had seemed that Canada was destined to lose the value-add of its raw materials as they are exported to countries that had invested in battery production.

We’ve seen this type of relationship in the battery supply chain before, in particular between Australia and China. In 2020, Australia accounted for almost 50% of global lithium production, but the majority of this material was exported to China for refining.

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