Lithium-ion batteries are the future of the global auto industry. Tesla set the bar high for other electric vehicle manufacturers. But that didn’t stop Chinese tech giant Huawei from jumping into the worldwide electric vehicle manufacturing race.
But as Elon Musk pointed out, there’s a global supply chain issue, and that affects the amount of lithium-ion batteries available for electric vehicle production. Mr. Musk tweeted the cost and scarcity of nickel forced him to raise prices on two Tesla models.
Canada’s Noront Resources Plans To Produce More Nickel In Ontario
Canada is not in the top five when it comes to mining nickel. China, Russia, Brazil, Australia, and Switzerland are the top nickel producers. But in northwestern Ontario, there’s a mining area called the Ring of Fire, and Noront plans to pull nickel out of that area.
Wyloo Metals executives think Canada’s Ring of Fire might produce enough nickel to make a positive impact on electric vehicle manufacturing. Wyloo owns 23% of Noront, but the company wants to buy all the outstanding shares for more than $110 million.
Wyloo backed up the commitment to increase nickel production when CEO Luca Giacovazzi put out a press release that outlines the company’s plan to build a ferrochromium plant in northwest Ontario. The plan is to produce better-grade nickel for electric vehicles.
Noront’s press release claims they need an official buy-offer before they celebrate. But according to Wyloo officials, their written buy-offer is on the way.
Canada Needs More GDP Growth And Nickel Mining Will Help
The pandemic did a number on Gross Domestic Product growth in Canada. Plus, Canada got into a trade war with China after the Royal Canadian Mounted Police arrested Huawei Technologies CFO, Meng Wanzhou, in 2018. The U.S. asked Canada to stop Wanzhou at the Vancouver airport for violating the sanctions against Iran.
China immediately arrested two Canadians living in China, and both men face long jail sentences unless Canada releases Meng. A federal judge plans to rule on Meng’s case in August. Trade between China and Canada rests on the judge’s decision.
Wyloo also partnered with Orford Mining in order to help increase nickel production in Quebec. There’s a lot of mining to do in Canada. Several other mining companies want to develop new nickel mining strategies in other parts of Canada, according to several news reports.
