Canada is currently in the process of positioning itself as “a cornerstone of the North American battery supply chain,” writes James Frith in a recent piece for Bloomberg.
Pointing to two battery cell manufacturers choosing Canada as a future site of operation —UK-headquartered Britishvolt and Canadian-headquartered Stromvolt — Frith argues that “Canada is now on course to create a strong domestic battery supply chain” — which, in light of increasing EV demand in North America, could grow to “challenge the dominance of China, and it is quickly catching up with the growing industry in Europe.”
From south of the border, these developments are highly relevant in the context of an emerging North American integrated supply chain for critical minerals, with Canada and the United States being able to leverage a long history of close cooperation and trade, as well as the USMCA free trade agreement — under which “batteries produced in Canada can be sold to the EV supply chain in the U.S.”
Both countries have in recent years explored ways to cooperate in their efforts to secure critical mineral supply chains, but in the past few months, against the backdrop of starkly rising demand scenarios for the metals and minerals underpinning the green energy transition, calls for a further deepening of cooperation between the two countries have been getting louder. Most recently, former U.S. ambassador to Canada David Jacobson made the case for tackling “this new challenge by together establishing our place in the global supply chain.”
At ARPN, we’re all in on collaboration — however, it should not distract us from responsibly building out our own domestic mining and processing capabilities for critical minerals. As we’ve said before:
“Let’s do it. Let’s build out an integrated North American supply chain for critical minerals where possible — but let’s also not forget that closer cooperation with our friends and allies AND strengthening domestic resource development should not be considered mutually exclusive strategies.”