Good afternoon. Thank you to the committee for the invitation to appear and speak on this important study.
Accelerate is an industrial alliance of key actors in Canada's emerging zero-emission vehicle supply chain. Our network of partners and collaborators includes critical minerals miners, battery producers, battery materials producers, vehicle parts makers, vehicle manufacturers, researchers and labour interests.
Since 2021, we have been working to support more Canadian content in EVs built here in North America and sold around the world. By developing and supporting the EV industry, Canada can achieve multiple outcomes at once. Expanding the EV supply chain means more jobs in mining, materials production, manufacturing and research from coast to coast. More materials production, driven by EV and battery production demand, can support our defence industries. Having more EVs on our roads means better air quality and lower GHG emissions.
All together, a strong EV supply chain will provide the finished products, battery precursors and critical materials that our trading partners need. Achieving these outcomes requires a balanced and holistic approach that supports the supply of materials, supports the development of the EV market and supports our traditional automotive industries.
Last year, Accelerate undertook a new research project on how Canadians view the emerging EV industry. What we learned was that Canadians in all regions support the development of EV supply chain industries, including mining, battery materials, components, and final manufacturing. For them, this industry represents a significant opportunity for new jobs.
Our research shows that a majority of Canadians believe that investing in the EV supply chain should be at least a moderate investment priority for the government; that almost three in 10 Canadians become more supportive of critical mineral mining and processing after being told these are part of the EV supply chain, including a small proportion who are initially opposed to these industries but who become more supportive when they are linked to EVs; and, finally, that Canadians who own or know someone who owns an EV have stronger support for the development of the EV supply chain here. This research shows that more EVs on our roads will increase public support for the critical minerals mining and processing industries, which are important not only for EV production but also for defence, clean technology and trade development objectives.
Today, it is widely recognized in Canada and by our allies that concentrated global supply chains for critical materials, including battery materials, represent a significant economic and security risk. For some of the key material inputs that go into making an EV battery or motor, greater than 90% of the world's supply is produced in China. This means that even though Canada has the raw materials needed and the final manufacturing prowess, we are missing critical segments of the overall supply chain.
We believe that the current government's approach of a limited allowance of Chinese EVs into the Canadian market must be paired with continued and effective supports for Canada's own EV industry. These would include deploying a national IP strategy for Canada's critical materials producers that would fast-track patent processing for technologies deemed critical to the national interest, including those related to battery materials and battery materials production, and ensuring that future deals to secure foreign direct investment in the production of batteries or EVs include provisions that require investors to work with Canadian critical materials providers to eventually achieve specific levels of Canadian material content.
Finally, we would like to see assurances that future agreements on joint ventures in Canada for the production of batteries or EVs include safeguards to support IP protection—we know there are some of these in the new automotive strategy—as well as requirements for Canadian materials supply at Canadian prices and provisions to facilitate technology transfer to Canadian firms. Any deal must increase Canada's strategic independence and economic resilience.
In conclusion, just as the automotive industry in the past 100 years has been linked to Canada's economic, defence and industrial capacity, so too can the EV and battery production industries support these objectives for the next 100 years.
Thank you very much.