Automotive News Canada - August 2022 - 32

32
* AUGUST 2022
EVs will likely be a gold mine
for nickel
Vale Canada expects to finish an expansion of its Voisey's Bay mine
in Labrador this year and it plans to extend the life of its mine in
Thompson, Man. Canada is the world's sixth-largest producer of nickel.
SUPPLIED PHOTO
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demand will nearly double to about 5,000
kilotonnes in 2030 from 2,640 in 2021.
'GENERATIONAL OPPORTUNITY'
Canada's reserves of Class 1 nickel,
the grade needed for batteries, give it the
opportunity to advance its global standing,
said Jeffery Lewis, a spokesman
for Vale S.A., the world's top nickel
producer.
" There is a generational opportunity
for Canada to anchor itself as the
leading, most sustainable critical-mineral-producing
jurisdiction for North
America and Europe, " Lewis said.
The Brazil-based company has several
large nickel mining and processing sites
in Manitoba, Ontario, and Newfoundland
and Labrador. It recently signed a longterm
contract to supply nickel from its
Canadian operations to electric-vehicle
maker Tesla and has active dialogues
with other automakers,
cathode producers, cell manufacturers
and recyclers, Lewis said.
It is also working to expand its
Canadian operations.
Vale Canada expects to
complete an expansion of its
Voisey's Bay mine in Labrador
this year and has committed
$150 million to extending the life
of its mine in Thompson, Man.
The company is also spending
$890 million to refurbish its
Copper Cliff smelting complex in
Sudbury, Ont., Lewis said.
In Bécancour, Que. - a city
midway between Montreal and
Quebec City that is quickly
becoming a hotbed for battery
materials - Vale is also studying
construction of a nickel-sulfate
plant. The mining company
wrapped up a pre-feasibility
study in June, but the project
still requires regulatory and company
approval.
The proposed nickel-sulfate operation
would be a first of its kind for the country
as Canada does not currently have a
plant capable of processing nickel into
the form needed for EV batteries, said
Photinie Koutsavlis, vice-president of
economic affairs and climate change at
the Mining Association of Canada.
If the project moves forward, Vale
would join BASF, Posco Chemical and
General Motors, which announced plans
this spring to build a pair of cathode-active-material
plants in the Quebec city.
" It's definitely coming together in this
one particular area, " Koutsavlis said,
" and having Vale be able to come out
with this pre-feasibility study brings a
lot more credibility as well to start building
that momentum for other companies
to follow suit. "
'THINK STRATEGICALLY'
Despite the progress, concerns about
the timeline and scale of expansion needed
to meet voracious EV battery demand
in North America and beyond are pervasive.
Canada
needs to " think strategically "
and employ new models to more quickly
eliminate risk from projects so industry
can get new streams of critical minerals
to market, Lewis said.
The federal government's recent commitment
to spend $3.8 billion on a critical-mineral
strategy will spur more projects,
Koutsavlis said. But the window for
action is narrow.
" If Canada does not get out the door as
quickly as possible ... to establish
battery and critical-mineral value
chains within this country, from
exploration all the way to manufacturing
and production, then
we're losing that opportunity to
others, " she said.
Koutsavlis:
An expedited
permitting
process for
mines is " not
about cutting
corners, but
about being
able to get
through the
bureaucracy
a little bit
quicker. "
PHOTO:
LINKEDIN
With competing countries on
Canada's heels, Koutsavlis said,
" it will all be for naught " if the
federal government cannot speed
up the permitting process to get
more mines built.
" It's not about cutting corners
but about being able to get
through the bureaucracy a little
bit quicker, " she said.
Recent comments from Natural
Resources Minister Jonathan
Wilkinson indicate that Ottawa
is aware that 10- or 15-year timelines
for project approvals will
block Canada from seizing the
opportunity, Koutsavlis said.
In recent outreach that will
help shape the federal government's
critical-minerals strategy, NRCan has
called on industry to highlight ways that
Ottawa can " streamline the regulatory
processes to better facilitate project
development. "
DOES TALK HAVE TEETH?
FPX Nickel's Turenne is optimistic
about the recognition of the issue but
said he will wait to see whether the rhetoric
" has teeth. "
Currently, he said, a battery metals
deposit goes through the same approval
process as other sites, such as gold
mines. This is " nonsensical, " Turenne
said.
Judge says Ford
followed the law
for fuel-economy
rating label
CONTINUED FROM PAGE 3
Department of Natural Resources two-cycle
fuel-consumption testing requirements
in effect at the time, rather than perform
a more accurate five-cycle test used by the
U.S. Environmental Protection Agency,
Superior Court Justice Edward Belobaba
ruled. Canada adopted the U.S. test beginning
with 2015 models.
Belobaba found no violation of federal
or provincial consumer protection laws
and dismissed the suit, which sought $1.5
billion in damages for 600,000 purchasers
and lessees.
Ontario resident
Barry Rebuck, who
filed the suit, claimed
that his leased 2014
Ford Edge got " far
worse " than the 24
mpg city/36 mpg highway
estimated on the
If Canada does not get out the door
as quickly as possible ... to establish
battery and critical-mineral value
chains within this country...
then we're losing that
opportunity to others.
PHOTINIE KOUTSAVLIS
Mining Association of Canada
" There's a huge societal and environmental
benefit to the development of battery
metals projects that are different
than things like gold that don't have the
same industrial use, " he said.
FPX's project in B.C. has been in
development for more than 10 years,
Turenne said. " There's probably another
six to seven years left of development
capital that needs to be applied, " he said.
Globally, approval timelines vary dramatically.
According to the IEA, lead
times for nickel mines range from four to
18 years. The organization also estimates
that as many as 60 new nickel mines will
be needed by 2030 to meet rising demand.
To get there, mine construction needs
to start today, Turenne said.
" If we don't, then we won't be able to
actually achieve the EV adoption targets
that the federal government has set out
both in Canada, in the United States and
in other countries. " - ANC
THE CANADA ADVANTAGE
* 82 per cent of Canada's electricity grid
relies on renewable or nonemitting
sources.
* Nickel produced and processed in
Canada has the second-lowest carbon
intensity in the world.
* Canada is one of few countries to
have large deposits of high-grade,
or Class 1, nickel.
* The Ukraine war has raised nickel
supply chain concerns, as Russia
currently supplies 20 per cent of the
world's Class 1 nickel.
Sources: International Energy Agency,
Natural Resources Canada
crossover's EnerGuide label. Rebuck " was
not pleased " that he got only 23 mpg when
highway driving to Florida, Belobaba
wrote.
In his June 15 decision, the judge said
Ford's compliance with government guidelines
" cannot fairly or reasonably amount
to a breach of federal competition law. " In
addition, every Ford statement and representation
on the label " was literally true, "
he said.
Rebuck acknowledged that fuel consumption
could vary widely depending on
driving behaviour, weather and road conditions,
the judge said. He noted that some
drivers achieved the label ratings " with
fuel-efficient driving. "
HOLD YOUR HORSES, WRONG MUSTANG
A BRITISH COLUMBIA JUDGE HAS
dismissed a breach-of-contract suit accusing
a Duncan dealership of bait-and-switch
in a " Mustangs at Cost " sales promotion.
Provincial Court Judge J. Parker
MacCarthy found no contract violation in
how Island Ford, 60 kilometres north of
Victoria, handled the failed sale of a new
2019 Mustang.
Peter Sterczyk wanted to buy a Mustang
as a prize for a " lucky client " of his real
estate firm. He planned to acquire it with
dealer financing; use it during a yearlong
" Win My Ride " campaign; then draw the
winner, pay the loan balance and transfer
title to the client, the decision said.
Sterczyk argued that he was entitled to
a specific vehicle on Island Ford's website
for a maximum $30,000 " on the road. " That
vehicle actually was at a different Ford
store, however, and its original window
sticker shown on Island Ford's website
didn't list thousands of dollars in options,
including a 10-speed automatic transmission,
full leather interior and " performance
upgrade package " that pushed the
suggested price way above his $30,000 ceiling.
After
Sterczyk negotiated a purchase
offer and paid a deposit, the store refused
to provide that car and offered him any
of three less fully equipped Mustangs, the
decision said. He rejected the proposal.
In a June 26 decision setting aside the
contract, MacCarthy said both sides " were
mistaken about some underlying and
fundamental fact, the subject matter and
nature of the Mustang that was the object
of negotiations. Sterczyk thought it was
a Mustang with the EcoBeast package,
while the dealership thought it was a stock
Mustang. "
MacCarthy found no deceptive act or
misleading advertising by Island Ford.
- ANC
Automotive News Canada - August 2022

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