Canada is well known for its vast supply of natural resources, many of which go into making batteries for electric vehicles (EVs). That abundance could help secure a new deal to produce EV batteries in Canada.
According to a report by Reuters, an official familiar with the matter says several companies are in discussions with the Government of Canada to build an EV battery production facility.
One of those companies is Germany’s BASF, an important supplier of the raw materials required in the production of lithium-ion batteries in EVs.
“Canada is an interesting destination for potential production given its access to rising battery cell manufacturers in North America and its access to raw materials that are needed for the production of cathode materials,” BASF said in a statement to Reuters.
Without confirming the discussions, the company said they are currently reviewing expansion plans in “various regions.”
“BASF currently examines several options in various regions to further expand its production network in this fast growing market for battery materials and to continue to support its customers.”
The discussions allegedly center around acquiring funding through the $8 billion “Net Zero Accelerator” (NZA) fund. The fund was set up to help Canada achieve its goal of reaching net zero emissions by 2050.
Other European and Asian companies are also eyeing an entrance into the Canadian market. One of those is Austria’s Kreisel Electric.
Without providing a name, Gernot Friedhuber, a partner in Kreisel, confirmed they are close to securing a deal with a “large player in the bus and trucks industry.”
“We are in very concrete talks with a very large player in the bus and trucks industry. Should the decision be made in our favor, we would build production on site and create value in Canada.”
Friedhuber is likely referring to Quebec’s Lion Electric, which recently secured the largest order of electric school buses from a single buyer in the company’s history.