Canada is talking to a number of companies interested in setting up production in the electric vehicle (EV) supply chain, the industry minister said, as the government seeks to cut carbon emissions to net zero by 2050 and play a role in the shift toward greener cars.
There are “very active discussions with a number of players” to develop an EV supply chain, Industry Minister Francois-Philippe Champagne said in an interview last week. Champagne did not name the companies, only saying he spoke to representatives of Volkswagen last week, and has recently talked to executives from companies in the United States, Japan and Korea.
Canada is urging critical minerals producers and processors to scale up production. It has invested in EV projects through a multi-billion dollar fund set up in 2020, and last month pledged C$3.8 billion ($3 billion) over eight years to help boost the production and processing of critical minerals used for EVs.
Canada and the United States want all sales of passenger vehicles to be zero emissions by 2035. In March, Stellantis, the parent of Jeep and Chrysler, said it would build an EV battery JV with South Korea’s LG Energy Solution in Windsor, across the border from Detroit, which Champagne called a “watershed moment.”