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While the federal election is behind us, the global race to develop an integrated electric vehicle supply chain is gathering momentum.
Canada has a generational opportunity to leverage the country’s collective resilience fighting the pandemic to build a strong, vibrant, and green economic recovery. But we won’t get there without agility, hard work, partnership – and a sense of urgency.
Issues that animated the recent federal election demand a comprehensive and pragmatic policy agenda, be it climate change or reconciliation.
No less so for Canada’s ambition to develop a critical minerals supply chain and integrated electric vehicle (EV) industry.
There is no question the world needs mining to achieve a greener future. Our industry provides the building blocks for clean technologies like wind turbines, solar panels, nuclear energy and EV batteries.
The World Bank forecasts up to a 500 per cent increase in the production of green mineral and metal inputs to produce the clean technologies essential to limiting global temperature rise to 2 C. It is in both Canada’s and the world’s best interest to expand domestic production of low-carbon Canadian minerals and metals to meet this growing need as sustainably as possible.
This is worth repeating with the COP26 climate summit underway in Glasgow, Scotland. Our industry can harness a rich endowment of green metals to help Canada achieve its greenhouse gas-reduction (GHG) goals through development of an electric vehicle supply chain and industry.
Research by London-based ESG consultancy Skarn Associates, shows Canada already produces some of the lowest-carbon intensity minerals and metals globally.
For example, according to Skarn data, Canadian nickel is eight to 15 times less carbon intensive on average than nickel produced in competing jurisdictions. High purity Class 1 nickel products, integral for long-range EV batteries, produced at Vale’s Long Harbour processing plant in Newfoundland and Labrador are among the world’s least carbon intensive, putting Canada at the vanguard in this space.
Demand for nickel is forecast to double by 2030, spurred by government EV policy and production targets set by the world’s largest automakers. A pivotal challenge is fulfilling that demand with supply that meets society’s growing ESG expectations, not least when it comes to abating GHG emissions.
Canada cannot afford to miss this opportunity. Major auto makers have committed more than US$300 billion to EVs globally while battery makers have earmarked US$130 billion.
Commitments of that scale require expedited investment in exploration, mine development and production if Canada hopes to leverage its world-class resources to develop the battery supply chain, from cathode production to the manufacture of cell packs.
What’s needed are new partnerships – across government, industry, civil society and the financial sector – to grow markets and ensure investments are made and flow into Canada.
We are encouraged by provincial and federal commitments to promote responsible, long-term resource development focused on strategic minerals and the EV supply chain. Quebec’s whole-of-government approach to building a battery ecosystem is a positive step in the right direction.
Make no mistake: the technical and financial hurdles to building a production and supply chain of this magnitude are immense.
But Canada’s low-carbon resources, safely and sustainably mined and processed with Canadian knowhow, are a key differentiator.
Vale, and Canada’s mining sector more broadly, stands ready to help position Canada as a major player in the global EV revolution.
Let’s make it happen and deliver on that potential, together.
Mark Travers is executive vice-president of Vale Base Metals. Pierre Gratton is president and CEO of the Mining Association of Canada.
The views, opinions and positions expressed by all iPolitics columnists and contributors are the author’s alone. They do not inherently or expressly reflect the views, opinions and/or positions of iPolitics.
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