Automotive News Canada - September 2022 - 11

* SEPTEMBER 2022
11
U.S. law paves
the way for
battery growth
in Canada
SEVEN DAYS AFTER U.S. PRESIDENT JOE BIDEN SIGNED
the Inflation Reduction Act (IRA) into law, Canada's Justin
Trudeau hosted German Chancellor Olaf Scholz and executives
from Mercedes-Benz and Volkswagen.
It was a suspiciously well-timed visit, though officials
from both Germany-based automakers repeatedly poured
cold water on speculation
that the battery
supply-chain
deals they signed
with Ottawa on Aug.
23 had any connection
to auto sector
developments in
DAVID
KENNEDY
TORONTO
BUREAU
CHIEF
Washington a week earlier. The accords, all three parties
insisted, were months in the making.
Coincidence or not, Mercedes-Benz and Volkswagen
- two automakers with no production footprint in
Canada today - have begun exploring battery supply-chain
tie-ups in Canada at the precise moment those
could prove most advantageous.
The legislation that came into effect in the United
States on Aug. 16 includes an update to the consumer
electric-vehicle tax credit. It now pins
US $3,750 - half the $7,500 value
of the incentive - to automakers
integrating into their EV batteries an
escalating amount of material from
U.S. free-trade partners such as
Canada.
" The timing of this, right after the
adoption of the IRA, to me, it points
right back to that $7,500 EV credit, "
said Trent Mell, CEO of Toronto-based
Electra Battery Materials Corp.
The qualifying amount of battery
material from U.S. trading partners
begins at 40 per cent in 2024 and
climbs to 80 per cent by 2027.
Because most battery mineral
refining is done in China today,
Mell: " People
will be
clamouring
for [battery]
infrastructure
- not just the
mines but the
processing. "
FILE PHOTO
" there's just no way " most North American-made EVs will
reach those eligibility targets with current supplies, Mell
said.
" People will be clamouring for infrastructure - not just
the mines but the processing, " Mell said. The Germanybased
automakers' early collaboration deals with Ottawa
will help them get to the " front of the queue. "
The interest shown
by Mercedes-Benz
and Volkswagen
could lead to
production footprints.
Investments are yet to be
seen, but the fresh interest in
Canada shown by MercedesBenz
and Volkswagen appears
likely to lead to production footprints
for the two automakers
at one or more points in
Canada's battery supply chain.
General Motors and Stellantis
have already committed to
such projects. And other automakers,
those with and without current stakes in Canada,
are circling the country's large deposits of lithium, nickel
and other key battery ingredients.
Localizing battery-cell production in North America was
a priority for governments in Canada and the United
States even before the IRA was passed, said Mitchell
Smith, CEO of Vancouver-based Global Energy Metals
Corp. and a member of the Battery Metals Association of
Canada's board of directors.
Now, with the U.S. legislation providing added impetus
for automotive and battery-cell companies to source
material from North America, all signs point to further battery
value-chain spending in Canada to come, he said.
" This is a great opportunity for Canada to be able to
push that opportunity forward and grow the resource
space, but also be part of the manufacturing and refining. "
To
get " as many projects online as possible, " he said,
the focus now needs to turn toward accelerating permitting
processes and addressing other regulatory hurdles.
" As the industry moves from niche to mainstream,
more government involvement is certainly going to be
needed. " - ANC
The Recon and
Wagoneer S mark
the beginning
of the brand's
battery-electric
future
A positive
By VINCE BOND JR.
AUTOMOTIVE NEWS
DETROIT - THE FIRST FULLY ELECTRIC JEEPS
for Canada and the United States are scheduled to arrive
in 2024.
The Wrangler-inspired Recon and a sleek midsize
crossover called the Wagoneer S will mark the beginning
of the battery-electric era for the brand in its biggest markets.
The
Recon, like the Wrangler, will have removable
doors and windows and a power top to offer open-air driving.
The Wagoneer S, despite sharing a name with the
brand's largest SUVs, has its own design language.
Jeep is targeting a range of 400 miles - about 640 kilometres
- for the Wagoneer S and aims to produce 600
horsepower with a zero-to-60 mph (96 km/h) time of about
3.5 seconds. It will be sold in major markets around the
world, including Europe.
" The Wagoneer S is very exciting because it's
a statement of efficiency, " Stellantis design chief
Ralph Gilles said at a recent media briefing. " It's
also taking and reinventing that seven-element
grille and now you're piercing the wind. You're
really making art of Jeep DNA. "
The Recon features rugged styling that
appears made for trails. It has Selec-Terrain
traction management, e-locker axle technology,
underbody protection, tow hooks and off-road
tires. It also has the latest-generation Uconnect
infotainment system, including travel guides for
notable off-road trails.
The battery-electric Jeep Recon is inspired by
the Wrangler and will have removable doors and
windows. PHOTOS: STELLANTIS
Chrysler 300 and Dodge Challenger and Charger. The factory
is scheduled to lose those products after 2023.
The Recon and Wagoneer S are based on the STLA
Large platform that's designed to support EVs, Jeep
CEO Christian Meunier said.
Gilles: " You're
really making
art of Jeep
DNA. "
FILE PHOTO
RECON, WRANGLER S ORDERS OPEN IN 2023
Consumers can begin ordering the Recon and
Wagoneer S in early 2023. Both models will be assembled
in North America.
Stellantis hasn't said where yet, but Sam Fiorani of
U.S.-based AutoForecast Solutions said in the Sept. 9
Automotive News Canada Podcast that " a Jeep product "
is scheduled to be assembled at the automaker's plant
in Brampton, Ont., where the company
currently builds the
" That's quite remarkable, because you see
that the flavours of these two vehicles is quite
different, " Meunier said. " Customer targets are
extremely different. One is really an adventure
machine; the other one is more of a reinvention
of the American modern icon - high performance,
very fast, very premium. Very different
customers, but at the same time, the underpinnings
are pretty much common. The platform is
the same. The battery packs are the same. "
Meunier said being part of Stellantis allows
the brand to capitalize on engineering and design
resources, software and " all the horsepower that
we need to basically accelerate electrification and
keep the Jeep DNA intact, because that's what really matters. "
Jeep
is also planning to launch Wagoneer 4xe plug-in
hybrids in 2024 that have a combined battery and gasoline
range of 500 miles (about 800 kilometres).
Jeep said it will introduce four fully electric SUVs in
North America and Europe by 2025. The brand projects
that by 2030 EVs will account for half of its U.S. deliveries
and all of its sales in Europe.
Europe will get its first electric Jeep in early 2023 with
the debut of the subcompact Avenger. Jeep said it will
have a range of about 250 miles (400 kilometres) but is too
small to be suitable for the United States. The vehicle will
be built in Poland.
The Avenger is " smaller than today's Renegade, "
said Jim Morrison, Jeep's North America head, " and
although that segment is important for Europe, it still
doesn't exist here in the States. " - ANC
- With files from Greg Layson
charge for Jeep
The sleek-looking Wagoneer S
has an entirely different mission
than the Recon, said Jeep
CEO Christian Meunier, but, " The
platform is the same. The battery
packs are the same. "
PHOTOS: STELLANTIS
Automotive News Canada - September 2022

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