The global electric vehicle industry is constantly progressing owing to the significant government initiatives to promote the shift. However, the growing demand for the said technology raises concerns among industry players about a potential shortage of critical minerals for battery production.
That said, industry leaders like Tesla move to secure that they would have enough supply to support their current and future operations.
Interestingly, Tesla reportedly plans to develop an enormous battery plant and mining site in Ontario, Canada.
Why Ontario?
The province of Ontario boasts a booming cobalt and nickel mining sector. As we all know, these are two of the most critical mineral to produce li-ion batteries.
However, resources relevant to battery production are limited. Therefore, electric automakers like Tesla seek to invest in this field to avoid the looming shortage.
Tesla reportedly started proposing battery production plans with the government of Ontario in August last year. It is unsurprising as Canada is an ideal location that would enable the automaker to source the minerals near its US plants.
The report further noted that Tesla has been negotiating with the Ontario Government, claiming that it hired a local battery expert as its advisor in these particular matters.
The local government has also been implementing helpful initiatives to promote the EV uptake worth $25 billion in investment in the last two and a half years. It is also among the top factors attracting Tesla to invest in the province.
“[The] competitiveness of Ontario and its ability to attract capital through approvals timeframes that are competitive with other locations while working with the government to identify incentives to further increase the attractiveness of Ontario.”
Tesla’s filing
See Also:
- Canadian Government confirms talks with Tesla over Giga Canada
- Tesla battery suppliers enjoy shares growth amidst IRA tax credits
- Tesla improves energy density of the Cybertruck’s battery cells by 10%
- Tesla to equip Model 3 Project Highland with CATL M3P battery, per a report
- Tesla’s 4680-type battery cell hits 10 million unit production mark at Giga Texas
Tesla has reportedly filed the necessary proposals already to develop its new factory in Ontario. This potential partnership with the government will undoubtedly aid the automaker in securing access to the province’s abundant resources. Meanwhile, the province will enjoy a substantial economic boost.
