Industry Committee on Feb. 15th, 2022

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

That's great. Thank you.

Mr. Billedeau, has the chamber been consulted on any strategy being developed by the federal government, and have you received any indication of when a strategy might be completed?

[David Billedeau]

I don't have any knowledge of the timeline for the Government of Canada's critical minerals strategy. I can note that we are engaged with members of NRCan on an ongoing basis, but at this time I'm not aware of the level of consultations specific to a critical minerals strategy.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

What do you believe the federal government can do to improve engagement with stakeholders on the critical minerals file?

[David Billedeau]

I think that's an important question. I think there are two components to the answer: One, there has to be ongoing consultation, and, two, there has to be ongoing consultation with a number of different stakeholders along the supply chain including indigenous stakeholders. Our strategy for critical minerals should not be just exploration and extraction. It should be engaging with stakeholders along the value chain, including for those intermediary processes and manufacturing processes, to determine potential opportunities and touchpoints where the Government of Canada can provide value and support.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you.

Just so that this is really clear to me, you're not aware of any direct consultation by the department or the minister reaching out to organizations like yours?

[David Billedeau]

I am not aware of the Canadian Chamber participating in any consultation on a strategic plan for critical minerals at this time.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

That's good to know. Thank you.

While we're waiting for this strategy to be developed by the government, what are Canada and the members you represent at the chamber losing out on by not having a strategy in place?

[David Billedeau]

Perhaps to answer that question, I'll quickly articulate the opportunities across Canada in this space. Each region of our country has reserves of different critical minerals that can support regional sustainable economic development. Saskatchewan has abundant reserves of potash and uranium. Quebec has notable lithium, vanadium and a number of other minerals. There are rare earth elements in the Northwest Territories and uranium and manganese in Nunavut. We have mines on the east coast and smelters on the west coast. Unlocking cohesive development of critical mineral supply chain from extraction to manufacturing and closed-loop recycling presents opportunities to all of Canada. That is the space the private sector is particularly looking for government leadership on in the years ahead.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

Thank you.

I have one last quick question here. In your opinion, is there any redundancy or unnecessary regulations impeding the ability of the sector to grow?

[David Billedeau]

I don't have anything specific to point to at this time. I would note that our engagement with natural resources companies on this topic is relatively new. We just kicked off our critical minerals council earlier this month. I can commit to following up as we continue to engage with stakeholders.

[Tracy Gray, Conservative, Kelowna—Lake Country, BC]

I'm sorry to interrupt you. I'm out time here, but if you could table that information to this committee, that would be much appreciated.

Thank you.

[David Billedeau]

Of course.

Thank you.

[The Chair, Liberal, Joël Lightbound]

Thank you, Mr. Billedeau and Madame Gray.

We'll now turn to Madame Lapointe for five minutes.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you, Mr. Chair.

My first question is for Mr. Billedeau. It will explore a bit further some of the questions that my committee colleague Ms. Gray was asking about engagement.

In the natural resources committee, of which I'm a member, we're currently studying emission caps in the oil and gas sector. These discussions have led to looking at the future of energy in Canada. Yesterday we heard from a witness that the battery is going to be the central part of the new energy system. They went on to state that our metals and minerals sector positions Canada to be a leader in the development of EV parts, batteries and more. In your opinion, what do businesses need to see from a policy standpoint when it comes to critical minerals development? What should be the responsibilities of those businesses, as private stakeholders, within the development of our critical mineral strategy?

[David Billedeau]

Battery production is at the core of a lot of critical minerals discussions. I think there are a few things to note in response to your question. First, in order to spur battery production in Canada—and maybe I'll touch on that more in a moment—there needs to be funding to support capital expenditures in this space, but there also has to be the required infrastructure across the country to support consumer adoption of new technologies. Our automotive manufacturing industry builds where they sell. We have five OEMs operating out of Ontario producing about 1.4 million consumer cars annually, the majority of which are shipped to the United States. For Canada to increase its share of EV use amongst Canadians, there needs to be supporting infrastructure, charging infrastructure readily available coast to coast.

I saw that Flavio Volpe of the Automotive Parts Manufacturers' Association recently appeared before the committee. I suspect that some of what I say here may have been mentioned previously, but I think that within the auto sector, which is quickly electrifying their fleet of products while also decarbonizing their operations, there exists ample opportunity for battery production in this space. Canada has a unique opportunity here. Localized mineral supply will make our automotive manufacturing industry more competitive while supporting EV development by reducing logistical costs and further sourcing critical minerals in alignment with the regional-value-content requirements of the USMCA, the new NAFTA, which provides a competitive advantage to serving North American markets.

There are advantages to building EV batteries here in Canada, but we have to develop those extraction supply chains to source critical minerals to do so, and we also have to form financial partnerships to offset the significant capital expenditures required to set up EV production facilities.

[Viviane LaPointe, Liberal, Sudbury, ON]

I have a follow-up question, but I will tell you that in the panel you referenced, the two emerging themes we heard were “local, local, local” and to consider the entire supply chain. The follow-up question I have for you is this. As we turn to an economic recovery from the pandemic and towards a clean energy future, what are the key elements that should be included in a Canadian critical mine strategy?

[David Billedeau]

I will note that the chamber is actively engaged in consulting on Canada's net-zero strategy. The chamber's view on the transition to net zero and decarbonization is one of accepting multiple pathways to decarbonization. I mentioned in my prior remarks that Canada has to deploy a number of decarbonization technologies that are vital to the sustainable operations of the mining sector, inclusive of small modular reactors, hydrogen, and renewables like solar and wind. From a federal perspective, I think the chamber would like to see a joint net-zero and critical mineral strategy that leverages these different technologies and creates space for Canadian leadership in the decarbonization of the mining sector.

[Viviane LaPointe, Liberal, Sudbury, ON]

Thank you.

Oh, I have no more time. Thank you.

[The Chair, Liberal, Joël Lightbound]

You would have two seconds.

Thank you, Ms. Lapointe.

Mr. Lemire, you have the floor for two and a half minutes.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Mr. Chair.

I am pleased to address my elected colleague from Abitibi-Témiscamingue, Martin Ferron. I am pleased to see you here, Mr. Ferron.

The last budget of the Parliament of Canada proposed $9.6 million in funding over three years to create a centre of excellence for critical battery minerals. At the last committee meeting, I proposed that we recommend that this centre be located in Abitibi-Témiscamingue.

Indeed, we already have the Research Institute of Mines and Environment, a collaboration between the Université du Québec en Abitibi-Témiscamingue, UQAT, and Polytechnique. We also have the Elements08 Strategic Metals Excellence Centre, a collaboration between UQAT, the Cégep de l'Abitibi-Témiscamingue, and the Centre technologique des résidus industriels, or CTRI. In addition, there are mining innovation zones that we hope will be created in the future. We must also take into account the culture of collaboration of local businesses, suppliers, the mining community and expertise.

In short, do you believe that Abitibi-Témiscamingue is the ideal place to host this centre of excellence on critical battery minerals?

[Martin Ferron]

That's for sure. Your geographic location and mine might suggest that we have a favourable bias on this issue. That said, Abitibi-Témiscamingue is a fertile ground in the mining sector and a very fertile ground in the innovation and research sector.

Elements08, the new program at the Université du Québec en Abitibi-Témiscamingue, comes with players, professionals, highly qualified personnel, who will meet the needs of consumers. I am talking about companies that will need new technologies and new specializations to stand out in the market. Because of its university, its CEGEP and its specialized research chair, Abitibi-Témiscamingue will be of interest to companies wanting to create innovation. The funding and the presence of specialists on site will make it possible to provide these companies with expertise that is not available elsewhere.

This expertise is coupled with a strong mining industry and mineral wealth consisting of a variety of strategic metals. We are talking about rare earths, lithium and nickel, among others. A little further away, in the Laurentians, there is graphite. We have a series of metals, specialists, and an industrial sector that prove that Abitibi-Témiscamingue is a fertile ground for the development of secondary and tertiary processing. We can even talk about first processing, at the base, but in its continuity.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Tell us about the importance of this processing that is close to the resource whether it involves the chemical aspect or the production of cells.

Is Abitibi-Témiscamingue able to ensure this processing near the resource?

[Martin Ferron]

Absolutely. Today, of course, information technology means that distances no longer exist. In addition, the rail network, which serves us well, makes it easier to transport materials once they have been processed.

There is talk of environmental footprints and decarbonation, but in this perspective, the industry needs to become more innovative. It has to transform in smaller areas, controlling the environment, the materials and their discharges, in concentrated and environmentally well-managed parks. There are mechanical processing stages, but the others are chemical and physical.

In my view, many operations need to be concentrated in more strategic locations. We can go even further by pointing out that investment companies now want to partner with environmentally responsible companies, whether it is in their operations, their sales, their processing or their partnerships with communities. I'm talking about First Nations communities and other communities.

For all these reasons, I believe that it is beneficial to establish oneself in an area like Abitibi-Témiscamingue, which is a fertile ground conducive to all stages of processing and research.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Mr. Ferron.

[The Chair, Liberal, Joël Lightbound]

Thank you, gentlemen.

We can feel your pride. Your beautiful region, Abitibi-Témiscamingue, is well represented today on the Standing Committee on Industry and Technology. It was very interesting.

I will now give the floor to Mr. Masse for two and a half minutes.