Quebec is well positioned to become a leader in lithium battery manufacturing and to accelerate the shift toward the electrification of transportation.
In November, the Quebec government announced its intention to invest up to CA$1.4 billion to develop the lithium battery sector and thus become a world leader in transportation electrification.
The stars have never been so well aligned for Quebec to successfully deploy its strategy. The province has everything needed to set up a complete value chain, from ore extraction to battery production and recycling. It has an abundance of raw materials, including lithium, nickel, cobalt, carbon (graphite), silicon and manganese, critical and strategic minerals essential for battery manufacturing.
Quebec has other major strengths:
- its hydroelectricity, a renewable resource with a low environmental footprint, which will allow it to produce the greenest battery in North America;
- a reference in battery research and development, with more than 850 patents, as well as a world-class university network that is a true nursery of highly skilled talent;
- expertise in electric vehicle production with major players such as Nova Bus, Lion Electric Company and BRP, to name but a few;
- geographic proximity to major automakers and more than 700 parts manufacturers, to whom we are connected by a rail and maritime transport network;
- low operating costs in a North American context as well as trade agreements giving access to a market of 1.5 billion consumers.
Finally, Quebec is a welcoming land — and I know this well — where access to homeownership is relatively easy, healthcare is free, and tuition fees are the lowest in North America. It is also one of the most business-friendly territories, where wages are competitive and financial and fiscal incentives are very advantageous.
Support for the development of the battery sector
The major project of the lithium battery sector represents an exceptional economic growth opportunity for Quebec as demand for electric vehicles explodes globally, driven by the fight against climate change. The government of François Legault projects public and private investments of CA$7 billion over 10 years. To achieve this, in addition to the deployment of the Quebec Strategy for the Development of the Battery Sector, it has implemented the Quebec Plan for the Valorization of Critical and Strategic Minerals 2020-2025, measures that reinforce each other. It is also worth mentioning the Plan for a Green Economy 2030 which aims, among other things, to replace fossil fuels with electricity, notably in the transport sector.
Note that Quebecers are showing growing interest in purchasing electric vehicles thanks to the tax credits offered to them. Nearly 50% of electric and plug-in hybrid cars in Canada are here, in Quebec, according to recent data from the Quebec Electric Vehicle Association (AVEQ) and Electric Mobility Canada (MEC).
Investissement Québec will play a leading role both in supporting the growth of Quebec businesses and in attracting here the manufacturers of components necessary for battery assembly. Recent events, such as trade tensions between the United States and China and the coronavirus pandemic, have demonstrated the importance of having a local and resilient supply chain. Investissement Québec also has the mandate to seek investors in the fields of mineral extraction and processing on the territory and to support foreign companies in their establishment projects.
I have been working in the field of lithium-ion battery research for 35 years. I worked in France and Japan before joining the Hydro-Québec Research Institute (IREQ) in 1995. Since then, I have dreamed that Quebec would become a leading battery manufacturer. Drawing on my network of contacts here and abroad, I now want to help the Quebec government which, it must be emphasized, has a structuring business vision and shows growing interest in transportation electrification and energy storage. All the elements are in place and the opportunity to position ourselves on the global stage must be seized without delay.
This sponsored content was produced as part of the Impulsion MTL 2020 event – The international forum on fleet management.
