Canada produces negligible portions right this moment. But because the auto sector builds an end-to-end battery provide chain, and as legislators within the United States freeze out many abroad suppliers, mining consultants say Canada has the lithium reserves and regulatory local weather to satisfy a minimum of a part of North America’s burgeoning demand.
Canada is the one jurisdiction in North America with the mining know-how to get much-needed tasks on-line shortly sufficient, mentioned Phil Gross, CEO of Toronto-headquartered Snow Lake Lithium Ltd.
“Canada has the resources. Canada, most importantly, has the comprehension, which the United States just doesn’t have. Even the projects that we’re seeing in the United States, they’re getting stuck on the drawing board.”
New mines and processing crops can not come on-line quickly sufficient, he mentioned. If governments and trade can not come collectively to construct an built-in provide chain for lithium, “there’s an existential threat to the entire North American automobile industry,” Gross mentioned.
But pitfalls in allowing, restricted funding capital and dangers tied to scaling up very important new applied sciences persist.
Establishing a self-sustaining lithium trade in North America will likely be an uphill climb, mentioned Kwasi Ampofo, a mining and metals analyst at BloombergNEF.
Even if the United States “turned the ship” on allowing right this moment, manufacturing stays years away, Ampofo mentioned.
But the gradual course of within the United States “presents an opportunity” for Canada, Ampofo mentioned, as Canadian lithium bundled into batteries would assist automobiles qualify for the up to date US $7,500 EV tax credit score not too long ago enacted by the U.S. authorities.
Capital for lithium tasks in North America has been arduous to come back by to this point, he mentioned. But the brand new U.S. laws ought to “guarantee” buyers that metallic from native mines will discover consumers, encouraging them to maneuver forward with growth.
Lofty costs are one other issue. According to Bloomberg, the worth of lithium carbonate — one in style kind used for lithium-ion batteries — reached a brand new excessive in November, having greater than doubled for the reason that starting of the 12 months.
‘WE COULD BE IN PRODUCTION IN 2035’
Source: canada.autonews.com
