yet, but major corporations like Volkswagen, Mercedes, and Hyundai certainly have. And what they discovered is that if they jump through the right hoops, their customers will be able to qualify for a $7,500 tax credit on the electric vehicles they build. Policies matter and the new IRA is sending tremors up and down the supply and manufacturing chains. is reporting today that Volkswagen and Mercedes are about to conclude a deal to source nickel, cobalt, and lithium from Canada.
But manufacturing is one thing, The IRA goes further and requires the materials used to manufacture products also be sourced from approved trading partners. Canada is certainly one of them.When I read this story, my first reaction was, “Wait, Canada has cobalt?” I was under the impression that the vast majority of cobalt comes from the Democratic Republic of Congo.
that says in 2020, 1,510 metric tons of cobalt were produced in Labrador and Newfoundland, 1,543 tons in Quebec, 1,028 tons in Ontario, and 198 tons in Manitoba.of the Canadian government, “Canada does not currently produce lithium but has large hard rock spodumene deposits and brine based lithium resources.” That makes it sound like Canada has the resources, but they have not yet been developed. Perhaps that is about to change.
So yes, Canada has natural resources that can support the manufacture of batteries for electric vehicles. And now, because Joe Manchin saw the light, those resources will be available to companies like Volkswagen and Mercedes so their products are eligible for EV incentives in the US.that the IRA tax credits are only for “wealthy liberals.