Canada is charging up to be an electric vehicle (EV) battery hub.
Key Details
- As the demand for electric vehicles continues to accelerate, businesses are racing to secure materials to meet demand and the small town of Becancour, Canada, has become a good prospect.
- Many large names in the EV space have looked to Becancour to start building a battery hub including chemical maker BASF SE, Vale SA, General Motors, and Ford Motors.
- The companies are looking to the town to create a North American battery hub that will be able to supply the future demand of EVs and beat China.
Why it’s news
Recently, demand for EVs has been skyrocketing as more people switch from gas powered cars to electric.
The latest EY Mobility Consumer Index shows that 52% of people looking to buy a car want to buy an EV. This is the first time the number has exceeded 50%, representing a rise of 11 percentage points since last year.
In order to make batteries for EVs many manufacturers have to source the materials from China which is giving the country more money and makes EVs cost more due to the prices of shipping the batteries overseas.
In an effort to lower costs and compete with China to be an EV battery supplier many businesses have been looking to North America to build battery plants and the newest and best prospect is the small town of Becancour, Canada.
The town is located halfway between Montreal and Quebec City and would be a great central location to ship EV materials to the whole continent.
The city has major companies looking to invest money into the battery supply chain by creating factories there, including BASF SE, Vale SA, General Motors, and Ford Motors.
The city has many benefits including being easily accessible, cheap renewable power, and it is in close proximity to Quebec which has an abundance of battery metal deposits, according to Bloomberg writers Mathieu Dion and Yvonne Yue Li.
“Becancour really stood out as being extremely attractive, it’s kind of perfectly nestled between Canadian mineral sources and our factories,” said vice president at GM Canada, David Paterson. “The most important benefit is Quebec’s hydroelectricity—when you compare prices of electricity, Quebec wins anywhere in North America.”
Not There yet
While many of the companies have agreed to build battery plants in Becancour, many still require financing and permit approvals before construction can begin.
The businesses have verbally promised to have construction underway, but until all the finances are out of the way skepticism is still in the air.
The town has tried before to be a central business hub, but failed in the long run causing some concern. But, overall everything seems to look good for Becancour and as soon as the businesses can secure approval construction should be on the way.
