In recent news, automotive manufacturers have begun reaching agreements with Canadian mining companies concerning the mining of lithium, cobalt and other minerals necessary for the building of electric vehicles. American automotive companies such as General Motors have made it clear that they are going to be making a full transition to an electric product line within the next decade, and they will need help from Canada for the raw materials because the mining industry is extremely strong and well developed on the north side of the border between the United States and Canada.
A North-American supply chain
Automotive manufacturers in both Europe and Asia have set up supply chains that guarantee that the raw materials needed to build electric vehicles are nearby. Now, the plan is to set up the same type of supply chain in North America.
Having lithium reserves close at hand is critical when it comes to manufacturing electric vehicles because it is not safe to transport lithium batteries for long distances. Furthermore, North-American companies want to make sure that they are getting their supplies from countries that do not use exploitive child labor in their mines and factories.
An emerging industry
It is clear that electric vehicles are going to be a major part of the worldwide automotive industry going forward. What is less clear is which countries and companies will eventually dominate the market. Currently, companies in Europe and Asia are leading the way, but this could change rapidly as the traditional American automotive manufacturers headquartered in Detroit enter the market in a big way.
Canada is in a great position to provide the minerals needed for the manufacturing of electric vehicles. The mining industry in Canada has always been very strong, and some companies are already mining the materials that will be needed. Furthermore, the Canadian national government has long been friendly to the mining industry, and this trend is likely to continue.
Trudeau and Biden
Canadian prime minister Trudeau and United States president Biden have agreed that their two countries should work together to create an electric-vehicle supply chain for North America. For both leaders, the use of electric vehicles will be a big part of reaching goals for reducing carbon-dioxide emissions and slowing climate change. Furthermore, the two countries have long been allies, and it makes sense for them to work together now with electric vehicles.
