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Canada Emerges as a Major Force in Electric Vehicle Manufacturing and Global Critical Minerals Supply

Canadian Lithium

Attracting EV Investments in Canada

Multinational companies are investing billions of dollars into Canada’s electric vehicle (EV) manufacturing sector, attracted by government incentives, access to raw materials, and affordable renewable energy. Volkswagen Group’s recent announcement of building its first battery-cell plant outside Europe in Ontario highlights the growing interest in the country. The investments are being driven by the US and its allies’ efforts to reduce their dependence on China for critical minerals used in EV batteries and military equipment.

Canada: The New Critical Minerals Provider

As the global demand for critical minerals grows, driven by climate goals and energy security, Canada is poised to become a reliable provider of these resources to its international allies, including Japan. The country has signed a joint action plan with the United States to advance secure supply chains for critical minerals and has similar critical minerals cooperation agreements with Japan and the European Union.

Government Incentives and Global Competition

The Canadian government has offered subsidies and incentives to attract investments in EV manufacturing and critical minerals production. While it remains to be seen whether the new investments will reverse the declining trend in the Canadian auto industry, the country is positioning itself as a counterweight to China in the race to develop EV technology and supply critical minerals.

G7 Action Plan for Stable Supply of Key Minerals

The Group of Seven (G7) countries are expected to adopt an “action plan” for the stable supply of key minerals at an environmental ministers meeting in Japan. The plan aims to strengthen economic security and includes improving the forecast of long-term demand and supply of cobalt, lithium, and nickel, as well as developing an efficient recycling system. The G7 countries will also provide over $7.55 billion in financial support for mining development.

The Group of Seven: An intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States


Canada is emerging as a major force in electric vehicle manufacturing and global critical minerals supply drawing substantial investments from multinational corporations. This development not only supports the global energy transition but also strengthens the country’s economic and strategic position among its international allies. With the adoption of the G7 action plan for a stable supply of key minerals, Canada’s role in advancing economic security and promoting cleaner energy is set to grow, positioning the country as a key contributor to a sustainable future.

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