The US government will be collaborating with Canada to ensure that its battery manufacturers get a hold of the minerals that the country possesses to develop electric vehicles with much ease. The country’s Department of Commerce held a restricted virtual meeting with miners and battery developers to understand the strategies that will help Canada to refine the electric vehicle materials before supplying them to the US. This program comes amid the expanding need for electrification of the transportation system to mitigate emissions. The US was thinking of sourcing some of the materials internally, but the environmentalists disagreed with the mega-mining projects. This factor caused the officials championing this technology to explore other avenues like a partnership with Canada to benefit from their natural resources. Canada boasts of its 13 minerals that have been vital for the development of the national defense resources by Washington.
Reports revealed that Tesla, Talon Metals, Livent, and Albemarle are among the firms that participated in this virtual meeting to help the US entities to establish their facilities in Canada to benefit from its natural resources. However, the logistics challenges hindered this smooth process, and the government is working on making this program a success. A perfect demonstration is the meeting between US President Joe Biden and Canadian Prime Minister Justin Trudeau, where the two leaders agreed to establish supply chains between the two countries for the development of electric vehicles. The new administration in the US has managed to convince Canada to allow three of its companies to invest in Canada. Some of the stocks in this sector that have illustrated high performance include Lithium Americas, Critical Elements Lithium Corp, Lithium South Development Corp, QMC Quantum Minerals Corp., and Neo Lithium Corp.
The chief executive of one of the mineral companies stated that the United States is venturing this partnership with all of its disposable resources to ensure that it capitalizes on Canada’s lenient environmental regulations. Moreover, Lithium-based batteries are a challenge to move to other areas due to their fragile, flammable nature. This variable forces the country to have its battery cell plants developed in Ontario and Quebec to mitigate this enormous risk. Additionally, the US is exploring the potential of generating electric vehicle metals locally because these components are crucial for the growth of this sector in the country. Critics from Canada are against this idea of the US depending on their country for vital minerals stating that they are taking away that which should have helped their country.