Automotive News Canada - August 2022 - 1

CELEBRATING A CENTURY: TWO DEALERSHIPS TURN 100/P8
AUGUST 2022 | VOL. 6, NO. 8 | AUTOMOTIVENEWS.CA FOR BREAKING NEWS AND DIGITAL EDITION
LANA PAYNE
THE NEXT MOVES
FOR THE NEW
UNIFOR PRESIDENT
canada.autonews.com/labour
Canada dodges
a U.S. subsidy
bullet on EVs
Tensions were running high as a previous
proposal backed only U.S.-made EVs, which
could have effectively sunk the Canadian
industry before it ever got off the ground
By GREG LAYSON
and DAVID KENNEDY
AUTOMOTIVE NEWS CANADA
AN ABOUT-FACE IN U.S.
policy means electric vehicles
made in Canada will
now qualify for hefty
consumer tax credits
when sold in the United
States, a provision in a
proposal that is being
lauded by auto industry
executives on this side of
the border.
Under a previous proposal,
the tax credits
would have applied only
to vehicles assembled in
the United States. The
policy change averts
potential trade disputes
and clears a hurdle in
the path of Canada's EV
industry.
head of the Canadian Vehicle
Manufacturers' Association
(CVMA), which represents the
interests of the Detroit Three in
Canada.
" The emphasis on North
American-produced vehicles
underscores the integrated
nature of the automotive
industry. "
" It is encouraging to
see the new U.S. Senate
proposals aimed at
boosting EV adoption,
including an expansion of the
EV tax credit and a used-EV
incentive, " said Brian Kingston,
Sorbara:
The U.S. bill
is " welcome
news for
Canada's
automotive
manufacturing
sector "
as it
transitions
to electric
and hybrid
vehicles.
PHOTO:
LINKEDIN
The US $739-billion
bill overcame its biggest
hurdle Aug. 7, when
it was passed by the
Senate. It will likely be
signed into law.
The legislation
stemmed from a deal
struck July 27 by two top
Democratic negotiators,
Senate Majority Leader
Chuck Schumer of New
York state and Sen. Joe
Manchin, the conservative
West Virginia
Democrat who rejected
President Joe Biden's
earlier drafts but surprised
colleagues with a
new one.
The Democrats' 725-page
SEE POLICY REVERSAL PAGE 30
EVs: A positive
charge for women
Q&A with former GM Canada
President Maureen Kempston Darkes,
who was inducted into the Canadian
Business Hall of Fame
P6
Vale Canada's nickel smelting
operations in Sudbury, Ont.,
are getting $890 million in
improvements to keep the
trucks rolling.
SUPPLIED PHOTO
The auto industry is charging ahead
with EVs, but the supply chain
isn't on its feet.
It's also missing
a key ingredient
MOVING
HEAVEN AND
EARTH FOR
By DAVID KENNEDY
T ORONTO BUREAU CHIEF
UNDERPINNING CANADIAN
government and corporate
plans for a homegrown electric-vehicle
battery supply
chain are the country's deposits
of battery minerals. But as
automakers
and battery
companies
invest in new
or retrofitted
plants to support
the shift
to EVs, mining
experts
warn that
development
of the mines
and refineries
at the
base of the
value chain
is not keeping
pace.
A " misnickel
a
Vancouver-based mining
company working to develop a
large nickel project in central
British Columbia.
" You have the risk of retrofitting
car plants or building
new battery plants ... and
having those, unfortunately,
sit idle or at undercapacity
because there won't be enough
raw materials as feedstock, "
Turenne said.
Turenne: If
Canada wants
a battery
industry, mine
construction
needs to begin
today.
PHOTO:
LINKEDIN
alignment of timing " could
leave mines in development
as the rest of the sector moves
forward, said Martin Turenne,
president of FPX Nickel Corp.,
Canada is already a major
producer of nickel, the metal
that makes up the largest portion
of typical lithium-ion batteries
today. In 2020, it produced
close to seven per cent
of the world's nickel, making
it the sixth-largest producer,
according to Natural
Resources Canada (NRCan).
But with roughly seven
times more nickel than lithium
by weight in a typical
EV battery, the International
Energy Agency (IEA) expects
demand for the valuable commodity
to balloon through
the 2020s. In a May report,
the organization said nickel
SEE EVs PAGE 32
THE BIG PROBLEM
For an EV
battery, nickel
outweighs
lithium by about
seven times.
Canada does not
currently have a
plant capable of processing nickel into the
form needed for EVs.
PHOTO: GENERAL MOTORS
Samir
Akhavan
MANAGING PARTNER
416.880.8989 samir@templetonmarsh.com WWW.TEMPLETONMARSH.COM
NICKEL PICKLE
* As many as 60 new
nickel mines will be
required by 2030 to meet
high-end forecasts for
battery demand.
* Batteries accounted for
seven per cent of nickel
demand in 2021. By 2030,
they could consume 30 per
cent of the nickel market.
* Canada produced about
seven per cent of the
world's nickel in 2020,
making it the sixth-largest
producer.
* Typical lithium-ion batteries
today use seven times as
much nickel as lithium, by
weight.
* Global demand for nickel
is expected to nearly double
to about 5,000 kilotonnes
in 2030 from 2,640
in 2021.
http://www.AUTOMOTIVENEWS.CA http://canada.autonews.com/labour http://WWW.TEMPLETONMARSH.COM
Automotive News Canada - August 2022

Table of Contents for the Digital Edition of Automotive News Canada - August 2022
