Thank you, Mr. Chair.
Vice-chairs and members of the committee, thank you for inviting me here today.
I am the president of Accelerate, an alliance of companies and organizations that have come together to advance the development of a national zero-emission vehicle supply chain.
Our members are private sector companies and organizations from across Canada’s zero-emission and electric vehicle ecosystem, from mining companies to battery research and development organizations to parts manufacturers, vehicle assemblers, EV battery recyclers and EV charging companies.
The transition to zero-emission transportation is happening quickly—probably more quickly than most of us ever imagined. Paradoxically, this presents both an enormous opportunity and a threat for Canada.
I will first talk about the threat.
A large part of our economy relies on the success of the automotive industry. It accounts for 10% of our manufacturing GDP and is Canada's second largest export industry.
While there have been some announcements of electric vehicle, EV, assembly mandates for southern Ontario, it is not at all clear that the industry's footprint will remain as large as it has been for the past 60 years. Without a comprehensive strategy to attract and retain EV manufacturers, the long-term commitments of manufacturers to Canada will remain uncertain.
Let’s talk about the opportunity. This is an opportunity, not only to retain our auto sector footprint, but to grow it and move further up the global value chain. It’s an opportunity to develop and execute against a comprehensive EV strategy, and to take advantage of Canada’s enviable position to be a leader in the entire electric vehicle production chain.
As members know, we have the critical and rare earth minerals needed to build the next generations of batteries and motors. We have world-class battery and vehicle R and D. We have parts manufacturers that supply global OEMs and, of course, those OEMs have a history with and investment in Canada. By virtue of those investments, we have tens of thousands of skilled men and women who work in this industry and are vested in its success.
The window is open for Canada, but it won’t stay open forever. This committee has already heard a lot about the dominance of China in mineral, battery and EV production. It’s not only China. It’s the EU, Australia, South Korea, Japan, the U.K. and the United States. Every jurisdiction that believes it can benefit from the world’s transition to clean mobility is making a move. They’re developing comprehensive EV and battery supply chain strategies and making significant investments.
Canada has an enormous opportunity, but we can’t simply assume things will work out. While having parts manufacturing and vehicle assembly capacity will remain critical, it can’t be the only part of our auto sector’s future. It certainly doesn’t assure our success. Simply put, what got us here is not what’s going to get us there.
What will? Canada needs an integrated strategy to ensure that our EV supply chain flourishes here. We need our mining sector to be a part of our auto sector. We also need our software, AI and financial services sectors to be a part of our auto sector.
This will attract the world’s interest and investment, but it won’t happen by accident. It needs to be done purposefully and with intent.
The good news is that the federal government has already begun to focus on this opportunity, including through the release of the report entitled “From Mines to Mobility: Seizing Opportunities for Canada in the Global Battery Value Chain”. It has also provided funding for a centre of excellence on critical minerals and encouraged direct foreign investment in battery cell manufacturing. However, it needs to do more.
Critical minerals are a foundational part of this industrial future. The sector requires much more development and investment to ensure Canada’s future EV supply chain success.
Accelerate has already been supporting work in this area. We are collaborating with one of our members, Clean Energy Canada, which is leading our joint battery task force to work in consultation with various industry stakeholders, including parts manufacturers and OEMs, to advance Canada’s domestic battery industry.
Another of our members, the Battery Metals Association of Canada, has initiated a study of the opportunities in our critical minerals and metals sector to feed into an integrated and competitive EV supply chain.
This work will identify ways in which Canada can maximize critical mineral production and foster the production of battery active materials. Reports from these projects are forthcoming and will inform policy-makers on the opportunities in the upstream and midstream segments of Canada’s EV supply chain.