After a big year of spending, Canada’s no longer the underdog in the EV battery space.
What happened: Canada has surpassed China as the world’s most promising country for lithium-ion battery production, according to a new global ranking — a sign that its efforts to become an EV manufacturing hub are starting to pay off, per The Globe and Mail.
- The rankings, released by research group BloombergNEF, reflect the production potential of different countries in 6 to 10 years based on their performance in 2023.
Why it’s happening: The strength of Canada’s raw materials sector, the rising global demand for EV batteries, and the ability to lure in major players like Stellantis, Ford, and Volkswagen with subsidies were the main factors that catapulted Canada into the top spot.
- Researchers also found that unlike China, which has dicey trade relations with the U.S., Canada’s battery outlook has benefitted from its ties with the U.S. and Mexico.
Why it matters: The federal government has put a lot of eggs in the EV battery basket. Surpassing China as the most promising country for battery production is a positive sign that Canada is in a strong position to become a global leader in the industry.
Yes, but: The rankings only reflect the outlook of a country, based solely on what’s been done in the past year. If Canada fails to keep up the momentum seen in 2023 as other countries continue to invest, its time at the top of the rankings could be short-lived.—LA