Dolbeau-Mistassini, Québec, Canada. Photo courtesy of Céline Chamiot-Poncet.
Québec is all set to become the North American leader in the manufacture and assembly of lithium-ion batteries. An economic powerhouse in its own right in Canada, Québec is strategically located to tap the U.S. market and its enormous potential for electric transportation. The province is primed to make a sizeable investment to develop a battery industry and accelerate the transition to electrified transportation.
“This is a booming global market that offers tremendous opportunity. Québec already has everything in place to create a full value chain for lithium and become an industry leader,” said Guy Leblanc, President and CEO of Investissement Québec.
Competitive edge
Québec has got what it takes to successfully roll out its strategy and create a true ecosystem—from ore extraction to battery production and recycling. What’s more, the largest city in the province, Montréal, is an intermodal transport hub for goods destined to the North American and international markets. But that’s not all. Québec also has:
Critical and strategic minerals: The province has huge mining potential, boasting significant reserves of key mineral resources such as lithium, nickel, cobalt, graphite, silicon and manganese—all of which are essential for manufacturing batteries. These ore-bearing minerals can be extracted and processed locally.
Clean, low-cost renewable energy: Hydropower provides green, renewable energy with a small environmental footprint. Basically, Québec can produce the cleanest battery in North America.
Top-notch R&D capabilities: With leading researchers, a portfolio of more than 850 patents, and world-class universities that feed the pipeline with highly skilled talent, Québec is a battery R&D force to be reckoned with.
Manufacturing expertise: The province has over 60 companies operating in the smart electric transportation industry. They include big players like Lion Electric—North America’s leading electric school bus supplier, Novabus, AddÉnergie, and BRP.
Access to 1.5 billion consumers: Trade agreements with over 50 countries open up the market to 1.5 billion consumers.
One of the lowest operating costs in North America: Québec has the most competitive electricity rates and one of the lowest office space rental costs in North America, combined with a favourable tax treatment for businesses.
Equipment manufacturers within easy reach: Québec is close to major automakers that are investing more and more in EVs. In the past year, Ford, General Motors and Fiat Chrysler each injected $1 billion in the manufacture of green vehicles. Add to that over 700 auto parts manufacturers, and all is set. More than 2 million vehicles are manufactured in Canada every year.
Plus, Québec is a step ahead when it comes to adopting EVs. According to recent data from the Québec Electric Vehicle Association, the province accounts for almost half of the country’s plug-in vehicles. Québec also has the largest network of EV charging stations in the country.
Big government investments, big advantages, big opportunities
The Government of Québec is committed to developing the EV industry to meet its climate targets. Along with California, Québec makes its mark as a North America leader in the electrification of transport. To make sure the province stays on track, major investments in both the public and private sector are planned, and could reach $7 billion within 10 years.
Investissement Québec, the investment arm of the provincial government, plays a key role in the province’s strategy to develop the industry by providing financing, and strategic and technological support. The investment agency supports the growth of businesses that are already established in Québec and welcomes international manufacturers of battery assembly components by helping them locate to the province.
To help move forward with the government’s vision, the agency brought in Dr. Karim Zaghib, a world-renowned researcher and lithium-ion battery expert who has been working in the field for 35 years and whose work has resulted in more than 600 patents and 62 licences. Dr. Zaghib plans to encourage new players to join this major endeavour: “Considering its abundant mineral resources, Québec is a prime location for potential international investors engaging in mineral mining and processing,” he said.
“Québec is laying the groundwork to become a global leader in the electrification of transport. It has one of the most favourable environments for doing business, and the financial and tax incentives are very attractive.”
“Furthermore, recent events, such as global political tensions and the COVID pandemic, have shown how important it is to have a stable, reliable and resilient supply chain. This is a real opportunity we need to seize right here,” Dr. Zaghib added.
Innovation and technology are crucial in this field. “Investissement Québec International’s mandate is to meet with global investors to discuss innovative and impactful international projects that will drive the sustainable growth of the global lithium-ion battery industry. By working together, we can create a one of its kind North American hub in Québec,” explained Daniel Silverman, Vice President, Foreign Direct Investment at Investissement Québec.
“As one of the top economic development and financing corporations in North America, and with our regional partners, IQI is a foreign investors’ one stop shop to help them invest, establish, connect, expand, innovate, export, recruit and finance their business operations in Québec,” Silverman added.
Considering that every step of the process can be carried out in Québec, from exploration to mining, processing and, ultimately, recycling, the province is best positioned to produce batteries with a small environmental footprint while creating a stable and secure global supply chain.
For more information on Quebec's green battery expertise, please visit their website at https://www.investquebec.com/international/en.
