Motor Mouth: Quarter-million jobs may be at stake for Canada’s auto industry

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Quarter-million jobs may be at stake for Canada’s auto industry — via drivingdotca Autonews AutoIndustry Jobs

— the ultra-protectionist legislation so generously incentivizes locating battery cell plants in the U.S. that it’s hard to imagine Canada getting any new manufacturing facilities in the next 10 years.

A bit of simple math says that a similar plant, built just south of our border, would recoup up to US$2 billion — each and every year! — from the time the plant is projected to open in 2025 until 2032, thanks to that credit. In a worst-case scenario, if the IRA is enacted as written, it will be an overwhelming dis-incentive to building new cell manufacturing plants here in the Great White Frozen North.

Not quite. As Sweeney tells it, even in his company’s best-case scenario, Trillium didn’t project having more than three major battery plants come to Canada. By comparison, he says we have some 10 major car assembly facilities. So, while it would be fair to say that the possibility of losing battery cell facilities in Canada is not exactly welcome news, what is crucial is keeping those aforementioned car assembly plants humming.

If, however, as Sweeney notes, that Sudburian nickel instead went to GM’s Bécancour, Quebec plant and is processed there into cathode active material, the economic benefit to Canada would be sixfold compared with just “ripping it and shipping it” abroad. That’s more money in local economies, and more jobs that stay here in Canada instead of being sent overseas.

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