The Canadian government must strengthen the country's position as an electric vehicle manufacturer by investing further upstream in the industry's battery supply chain, First Cobalt CEO Trent Mell said Oct. 14.
"The midstream investments don't make the headline news as does funding for automobile assembly plants but are absolutely critical if we want to connect our raw mineral resources to future domestic production of new generation automobiles," Mell said in a statement.
Mell said Canada's recent investments in EV infrastructure and assembly plants provide a needed base of support for the domestic automotive industry and economy, but the country still lags behind others in supporting the greater supply chain.
"The most expensive component of an electric vehicle is the battery, which is made up of raw materials that are readily available in Canada," Mell said. "We see firsthand how other countries are securing a competitive advantage with integrated and streamlined domestic supply chain investments."
The critical upstream infrastructure needed to convert Canada's mining output for the domestic EV industry includes mineral refining, precursor and cathode production, and battery cell manufacturing, Mell said. The development of a cathode plant costs a fraction of the cost of an automotive assembly plant, he added.
"Without these critical components of the next generation auto supply chain there is little incentive to keep auto manufacturing plants in Canada over the long term," the executive said.
Government support for the upstream portion of the EV battery supply chain will also grant Canadian metal and mining companies an advantage when competing for necessary investments, Mell added.
First Cobalt is currently developing a hydrometallurgical cobalt refinery in Ontario, Canada. The refinery could be operational as early as 2021 with an annual battery-grade cobalt sulfate production capacity of 25,000 mt, or about 5% of the world's supply, according to the company's website.
Once operational, First Cobalt's refinery will be North America's only producer of refined cobalt for the EV market.
Source: Platts |
