Canada wants to replace China as the lithium mecca: the electric car industry is already taking positions

The search for lithium is close to becoming the new “gold rush”. The massive adoption of the electric car, either due to a demand for it or a political push for it, is causing car companies to be immersed in a dying race to ensure the supply of batteries for their electric cars.

In this race, the Asian dependency can mark the future of the industry. as collected neomotorIn 2021, only 1.19% of the batteries manufactured for electric cars had been produced by European or Canadian companies. CATL (with a production of 32.16%), LG (20.3%) and Panasonic (12.2%) show that the industry has looked to China, South Korea and Japan first. For now, Asia has struck the first blow on the table.

But forecasts of a mass adoption of the electric car It worries manufacturers, who do not claim to be able to supply all the expected demand with their offer. It is something that has been emphasized Elon Musk either Charles TavaresCEO of Stellantis, which is why brands are looking for alternatives to forced marches.

Some of them are choosing to eliminate intermediaries and associate with mining companies to guarantee their lithium resources, a good that, at the moment, is scarce in their supply. Others, such as Volkswagen or Mercedes, have preferred to distance themselves and plan to manufacture their own batteries so as not to depend on third parties. In this decision, Canada wants to offer itself as a lithium supplier and has already signed an agreement with both companies.

Canada, the beta to exploit

Canada is behind from Australia, Chile, Argentina and, of course, China when we talk about exploiting lithium, nickel or cobalt, among other materials. But the potential of the country is such that even union leaders They have proposed to isolate the United States from its market for these minerals as a pressure measure to improve its position in the world market.

It is not surprising, therefore, that Volkswagen and Mercedes have signed with Canada to secure a future supply of lithium. The country is tightening requirements to make it harder for foreign companies to access its reserves. Attempts that have already been carried out by the CATL itself, who purchased Millennial Lithium Corp. (Canadian company) in September last year worth almost 300 million dollars. Also Neolithium has been in the Chinese crosshairs.

And not only battery producers look at Canada. Imperial Oil Limited, one of the most important companies in the extraction and refining of oil, has also partnered with E3 Lithium for the lithium extraction in Alberta. The American media, like Bloombergalso echo that the manufacturers of their country have their eye on Canada and, in fact, Volkswagen will use the resources extracted there for the battery factories it aspires to build in the United States.