For assisting North America to control its electric-car destiny, a U.S.-Canada supply chain has been planned by the two countries.
- This past week, a private meeting was fixed by the U.S. and Canada to discuss the strategy of getting requisite minerals from Canada on grounds as well as across the border (Reuters reported). So the two countries have given the signal of working together in building more electric vehicles.
- These materials are highly required by North American automakers if they want to make the millions of motors and battery packs required for tomorrow’s EVs.
- Such cooperation is an ongoing trend of industry nowadays; the same kind of cooperative network has already been introduced to Europe and Asia.
The shift from gasoline-powered to electric vehicles has affected the value of available products in the automotive industry. Now the auto industry only needs exploration (mining) of more minerals for making electric motors and batteries for electric vehicles, despite drilling for petroleum. In Canada, Cobalt and lithium mines are already under development (Reuters reported).
The U.S-Canada supply chain is not surprising; in fact, such automotive supply chains at a global and local level used to be set for since long. As per Reuters report, A Virtual meeting was scheduled last week by the U.S. Department of Commerce with miners and battery manufacturers for discussing getting more minerals from Canada and providing to U.S. auto manufacturers for electric vehicles.
International competition is the key reason behind such cooperation. Six battery Giga factories to be built in Europe were recently announced by VW, while China is also interested in its own regional supply-chain efforts. As soon as Tsingshan, a stainless steel producer, announced that it would provide nickel matte of 100,000 tons to two Chinese battery producers, the overdriving of the nickel market was predicted by the South China Morning Post. Its proof is the dominance of China in the global battery supply chain.”
Reuters got no response on a question about the meeting by the U.S. Department of Commerce, although meeting included about 30 attendees, including Tesla, Talon Metals, and Livent Corp. as per Reuters, the American officials are looking for getting Canada as a reliable source with 13 of 35 minerals that the U.S. is treating now as “critical for national defence,”. The Department of Commerce is in view to assist U.S. companies in spreading their influence in Canada as well as controlling logistical challenges for accessing it to the United States.
VIRTUAL CONFERENCE BETWEEN PRIME MINISTER TRUDEAU AND PRESIDENT BIDEN ON FEBRUARY 23.
The U.S. President Joe Biden and Canadian Prime Minister Justin Trudeau met in late February. They discussed on cooperative work of two countries to build more EVs. Both leaders admitted that both countries would make supply chain in cooperation to bring Canada and the United States as the global leaders in terms of battery development and production.
So both leaders committed to strengthening the Canada-U.S bond and for net-zero industrial transformation, batteries for zero-emission vehicles, and rechargeable energy storage.
According to Reuters, Some agreements between the two countries were already decided, like no U.S. tariffs on Canadian parts for EVs and battery metals, although Canadian restrictions may be on the U.S. government for EV minerals. According to Canadian natural resources minister Seamus O’Regan that the U.S. is aware of the fact that Canada is “the most secure and most resilient source of metal imports for them.”