Quebec government in discussions with Tesla over EV battery supply chain deal

4680 production
Credit: Tesla

If talks are successful between Tesla and the Quebec government, the automaker may be greatly expanding their presence in Canada.

Last week it was announced that Markham, Ontario was home to a new battery equipment manufacturing facility. The 110,000 square foot facility makes the equipment that will be installed at Giga Texas and Giga Berlin to make the new 4680 battery cells.

First look at Tesla Toronto Automation manufacturing facility in Markham, Ontario

Now Canada may play another big role in Tesla’s supply chain by providing the raw materials that go into their EV batteries.

Quebec’s Minister of the Economy Pierre Fitzgibbon met with Tesla executives last month to discuss the possibility. A spokesperson for the minister confirmed the meeting to Le Journal de Montreal.

“The minister met with executives from Tesla during his mission to California in October. There was talk of Quebec’s place in Tesla’s supply chain,” said Mathieu St-Amand.

According to a source familiar with the matter, the talks between Tesla and Quebec have been going on for a while and “have advanced in recent months.”

This isn’t the first time Le Journal has reported discussions between the two parties. In 2018 the publication said the government was trying to attract a $2 billion investment from Tesla in the battery sector.

A potential venture into Quebec makes sense as the province is home to an abundance of nickel, lithium and other materials that are key in producing EV batteries.

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