The Canadian province of Quebec is in talks to attract battery makers and car manufacturers who combined are looking to invest some $11 billion in the province over the next three years.
Reuters reports that they are looking to build electric vehicle (EV) supply chains. Quebec has rich critical mineral resources including lithium, nickel and graphite, and wants car makers to diversify their supply chains.
Investment agency Investissement Québec CEO Guy LeBlanc said the province wants car makers to increase their reliance on reliable partners like Canada.
He said Quebec has secured C$15 billion in investments over the past three years. He anticipates the same again in the next three years. Those investing already include General Motors, Posco and Ford. On Thursday, Sweden’s Northvolt announced plans to build a $5.2 billion gigafactory in Quebec, its first outside Europe.
“When Quebec was putting together a plan for being a leader in North America for battery metals, it was not known as a destination for car manufacturing or making auto parts,” LeBlanc said. He added that the Canadian province decided to play to its strengths and develop a strategy to promote its critical mineral resources, including lithium, nickel and graphite.
The Canadian government has provided subsidies worth C$28.2 billion to EV makers, including C$2 billion to Northvolt, according to Reuters. The Quebec provincial government offered loans, equity and tax credits.
Northvolt said its 170-hectare 60 GWh cell manufacturing plant, to be built just outside Montreal, will have adjacent facilities for cathode active material production and battery recycling.
The first 30 GWh phase will start before the end of 2023 with operations set for 2026. It will employ 3,000 people and be the biggest private investment in Quebec’s history.
