Good morning. My name is Liz Lappin, and I am the president of the Battery Metals Association of Canada, or BMAC for short. In addition to BMAC, I also work for E3 Metals Corp., just recently mentioned by Mr. Bubar. We're working to develop a first-of-its-kind lithium project in Alberta. Thank you for the opportunity to present today.
Development of the battery metals sector, from mines to mobility, is essential to support the continued expansion and adoption of clean tech as the world transitions to a low-carbon future. Relative to the EU and Asia, the Canadian battery metals supply chains are currently in their infancy. However, with surging demand for battery metals to feed the expanding EV supply chain, the market opportunity for Canada is growing.
BMAC was formed to help develop the united industry voice. Through a collaborative approach, we're working to connect, align and advance the industry so that it can meet its full potential for Canada. Our community is predominantly based in western Canada; however, our vision is pan-Canadian.
This brief is divided into three sections that outline recommendations for the sector.
The first area of focus is support for critical minerals project development. The World Bank and a host of forecasters anticipate greatly increased global demand for critical minerals in the years ahead. While Canada has an abundance of resources, they have been slow to develop due to a variety of challenges. Examples include high volatility in emerging pricing, competition for capital against established critical minerals jurisdictions, the highly complex nature of battery metals production, and delays in regulatory and policy development. Canada needs to move swiftly to support the needs of its domestic economy.
To support critical minerals development, BMAC recommends financial support for qualified domestic battery metals companies that are capable of demonstrating viable prospective projects; promoting exploration and identification of resources by amending the Income Tax Act to ensure that lithium brine resources are eligible for flow-through shares; encouraging provinces to rapidly develop responsible yet industry-friendly mineral policy and regulations to accelerate critical mineral resource development; and promoting streamlined tenure and regulatory frameworks to incentivize responsible development. Finally, we recommend prioritizing innovation funding for industry cluster applications, which would incent Canadian collaborations and strengthen connections along the supply chain.
Our second area of focus is investing in value-added manufacturing. To avoid simply being an exporter of raw materials, Canada needs to further develop its domestic value-added industries across the country. Developing a complete, made-in-Canada, end-to-end, coast-to-coast supply chain is key to ensuring that Canadians have access to the resources and products they need, including batteries for electric vehicles and energy storage. To do this, we recommend prioritizing investment in the battery component and cell manufacturing sector as part of Canada's “build back better” strategy, developing policy and financial incentives to support Canadian industry and government to buy local, and, finally, harnessing the purchasing power of government, public institutions and publicly owned businesses to provide scale.
Our third and final focus area is developing a cohesive strategy. To borrow an analogy from the arts, it is commonly said that in order to play a symphony, you need an orchestra. Today what I hear are a variety of notes of music or even sometimes a few lines of music strung together. If the entire orchestra—including government, industry, academia and stakeholders—can all get organized behind a conductor, or essentially an overarching strategy, we could play some pretty incredible music. A symphony, like art, can be transformational, and a successful build-out of this industry in Canada can also be transformational, but only if we can all get behind that strategy, acting as a system rather than as individual actors or musicians just playing our own parts.
Canada is on the cusp of a rare, once-in-a-generation opportunity to develop its critical mineral industry and compete in this major new market. The global pandemic, in particular, has laid bare the shortcomings in Canada's ability to produce critical goods needed for our country. We do not wish to face similar circumstances in the resources, components or products that will deliver a greener future to Canadians. While it's true that Canada has fallen behind in this respect, it can still catch up, particularly as the sector continues to evolve to meet Canada's own needs.
BMAC believes that by acting swiftly, together, efficiently and responsibly, we will realize the abundant opportunities before us.
Thank you.