A battery-heavy strategy is helping Canada stay relevant

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Canada is pitching corporate actors a compelling sell sheet, blending the promise of U.S. market access with raw-material supply, a strong environmental record and government support.

When the federal and Ontario governments began hinting last fall at imminent investments in Canada’s electric-vehicle battery supply chain, I was more than a bit skeptical.

As the auto sector enters uncharted territory, government has been “trying to find something to hang their hat on,” said Sam Fiorani vice-president of global vehicle forecasting at U.S.-based AutoForecast Solutions . So far, he said, the battery-heavy strategy is helping Canada “stay relevant.” Government narratives about the strength of combining Canada’s raw materials with its advanced-manufacturing base are resonating with industry because an integrated North American supply chain is what the automotive industry needs, said Conrad Layson, senior alternative-propulsion analyst at AFS.

Fiorani pointed to Honda’s and Toyota’s assembly operations in Ontario — where current production covers gasoline and hybrid vehicles, but not battery-electrics — as having potential. General Motors’ Oshawa Assembly Plant, which builds gasoline and diesel pickups, is another example.

 

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