Canada set to hit 5 GW milestone


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Canada Solar Capacity Outlook 2022-2050 projects 500 MW new PV in 2022 and 35 GW by 2050, driven by renewables policy, grid parity, NREL analysis, IEA-PVPS data, and competitive utility-scale photovoltaic costs.

 

Key Points

An evidence-based forecast of Canadian PV additions to 35 GW by 2050, reflecting policy, costs, and grid parity trends.

✅ 500 MW PV expected in 2022; cumulative capacity near 5 GW

✅ NREL outlook sees 35 GW by 2050 on cost competitiveness

✅ Policy shifts, ITCs, coal retirements accelerate solar uptake

 

Canada is set to install 500 MW of new solar in 2022, bringing its total capacity to about 5 GW, according to data from Canmet Energy, even as the Netherlands outpaces Canada in solar power generation. The country is expected to hit 35 GW of total solar capacity by 2050.

Canada’s cumulative solar capacity is set to hit 5 GW by the end of this year, according to figures from the federal government’s Canmet Energy lab. The country is expected to add around 500 MW of new solar capacity, from 944 MW last year, according to the International Energy Agency Photovoltaic Power Systems Programme (IEA-PVPS), which recently published a report on PV applications in Canada, even as solar demand lags in Canada.

“If we look at the recent averages, Canada has installed around 500 MW annually. I expect in 2022 it will be at least 500 MW,” said Yves Poissant, research manager at Canmet Energy. “Last year it was 944 MW, mainly because of a 465 MW centralized PV power plant installed in Alberta, where the Prairie Provinces are expected to lead national renewable growth.”

The US National Renewable Energy Laboratory (NREL) studied renewables integration and concluded that Canada’s cumulative solar capacity will increase sevenfold to 35 GW by 2050, driven by cost competitiveness and that zero-emissions by 2035 is achievable according to complementary studies.

Canada now produces 80% of its electricity from power sources other than oil. Hydroelectricity leads the mix at 60%, followed by nuclear at 15%, wind at 7%, gas and coal at 7%, and PV at just 1%. While the government aims to increase the share of green electricity to 90% by 2030 and 100% by 2050, zero-emission electricity by 2035 is considered practical and profitable, yet it has not set any specific goals for PV. Each Canadian province and territory is left to determine its own targets.

“Without comprehensive pan-Canadian policy framework with annual capacity targets, PV installation in the coming years will likely continue to be highly variable across the provinces and territories, especially after Ontario scrapped a clean energy program, which scaled back growth projections. Further policies mechanisms are needed to allow PV to reach its full potential,” the IEA-PVPS said.

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Canada recently introduced investment tax credits for renewables to compete with the United States, but it is still far from being a solar powerhouse, with some experts calling it a solar laggard today. That said, the landscape has started to change in the past five years.

“Some laws have been put in place to retire coal plants by 2025. That led to new opportunities to install capacity,” said Poissant. “We expect the newly installed capacity will consist mostly of wind, but also solar.”

The cost of solar has become more competitive and the residential sector is now close to grid parity, according to Poissant. For utility-scale projects, old hydroelectric dams are still considerably cheaper than solar, but newly built installations are now more expensive than solar.

“Starting 2030, solar PV will be cost competitive compared to wind,” Poissant said.

 

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BC's Kootenay Region makes electric cars a priority

Accelerate Kootenays EV charging stations expand along Highway 3, adding DC fast charging and Level 2 plugs to cut range anxiety for electric vehicles in B.C., linking communities like Castlegar, Greenwood, and the Alberta border.

 

Key Points

A regional network of DC fast and Level 2 chargers along B.C.'s Highway 3 to reduce range anxiety and boost EV adoption.

✅ 13 DC fast chargers plus 40 Level 2 stations across key hubs

✅ 20-minute charging stops reduce range anxiety on Highway 3

✅ Backed by BC Hydro, FortisBC, and regional districts

 

The Kootenays are B.C.'s electric powerhouse, and as part of B.C.'s EV push the region is making significant advances to put electric cars on the road.

The region's dams generate more than half of the province's electricity needs, but some say residents in the region have not taken to electric cars, for instance.

Trish Dehnel is a spokesperson for Accelerate Kootenays, a multi-million dollar coalition involving the regional districts of East Kootenay, Central Kootenay and Kootenay Boundary, along with a number of corporate partners including Fortis B.C. and BC Hydro.

She says one of the major problems in the region — in addition to the mountainous terrain and winter driving conditions — is "range anxiety."

That's when you're not sure your electric vehicle will be able to make it to your destination without running out of power, she explained.

Now, Accelerate Kootenays is hoping a set of new electric charging stations, part of the B.C. Electric Highway project expanding along Highway 3, will make a difference.

 

No more 'range anxiety'

The expansion includes 40 Level 2 stations and 13 DC Quick Charging stations, mirroring BC Hydro's expansion across southern B.C. strategically located within the region to give people more opportunities to charge up along their travel routes, Dehnel said.

"We will have DC fast-charging stations in all of the major communities along Highway 3 from Greenwood to the Alberta border. You will be able to stop at a fast-charging station and, thanks to faster EV charging technology, charge your vehicle within 20 minutes," she said.

Castlegar car salesman Terry Klapper — who sells the 2017 Chevy Bolt electric vehicle — says it's a great step for the region as sites like Nelson's new fast-charging station come online.

"I guarantee that you'll be seeing electric cars around the Kootenays," he said.

"The interest the public has shown … [I mean] as soon as people found out we had these Bolts on the lot, we've had people coming in every single day to take a look at them and say when can I finally purchase it."

The charging stations are set to open by the end of next year.

 

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Within A Decade, We Will All Be Driving Electric Cars

Electric Vehicle Price Parity 2027 signals cheaper EV manufacturing as battery costs plunge, widening model lineups, and tighter EU emissions rules; UBS and BloombergNEF foresee parity, with TCO advantages over ICE amid growing fast-charging networks.

 

Key Points

EV cost parity in 2027 when manufacturing undercuts ICE, led by cheaper batteries, wider lineups, and emissions policy.

✅ Battery costs drop 58% next decade, after 88% fall

✅ Manufacturing parity across segments from 2027

✅ TCO favors EVs; charging networks expand globally

 

A Bloomberg/NEF report commissioned by Transport & Environment forecasts 2027 as the year when electric vehicles will start to become cheaper to manufacture than their internal combustion equivalents across all segments, aligning with analyses that the EV age is arriving ahead of schedule for consumers and manufacturers alike, mainly due to a sharp drop in battery prices and the appearance of new models by more manufacturers.

Batteries, which have fallen in price by 88% over the past decade and are expected to plunge by a further 58% over the next 10 years, make up between one-quarter and two-fifths of the total price of a vehicle. The average pre-tax price of a mid-range electric vehicle is around €33,300, and higher upfront prices concern many UK buyers compared to €18,600 for its diesel or gasoline equivalent. In 2026, both are expected to cost around €19,000, while in 2030, the same electric car will cost €16,300 before tax, while its internal combustion equivalent will cost €19,900, and that’s without factoring in government incentives.

Other reports, such as a recent one by UBS, put the date of parity a few years earlier, by 2024, after which they say there will be little reason left to buy a non-electric vehicle, as the market has expanded from near zero to 2 million in just five years.

In Europe, carmakers will become a particular stakeholder in this transition due to heavy fines for exceeding emissions limits calculated on the basis of the total number of vehicles sold. Increasing the percentage of electric vehicles in the annual sales portfolio is seen by the industry as the only way to avoid these fines. In addition to brands such as Bentley or Jaguar Land Rover, which have announced the total abandonment of internal combustion engine technology by 2025, or Volvo, which has set 2030 as the target date, other companies such as Ford, which is postponing this date in its home market, also set 2030 for the European market, which clearly demonstrates the suitability of this type of policy.

Nevertheless internal combustion vehicles will continue to travel on the roads or will be resold in developing countries. In addition to the price factor, which is even more accentuated when estimates are carried out in terms of total cost of ownership calculations due to the lower cost of electric recharging versus fuel and lower maintenance requirements, other factors such as the availability of fast charging networks must be taken into account.

While price parity is approaching, it is worth thinking about the factors that are causing car sales, which are still behind gasoline models in share, to suffer: the chip crisis, which is strongly affecting the automotive industry and will most likely extend until 2022, is creating production problems and the elimination of numerous advanced electronic options in many models, which reduces the incentive to purchase a vehicle at the present time. These types of reasons could lead some consumers to postpone purchasing a vehicle precisely when we may be talking about the final years for internal combustion technology, which would increase the likelihood that, later on and as the price gap closes, they would opt for an electric vehicle.

Finally, in the United States, the ambitious infrastructure plan put in place by the Biden administration also promises to accelerate the transition to electric vehicles by addressing key barriers to mainstream adoption such as charging access, which in turn is fueling the interest of automotive companies to have more electric vehicles in their range. In Europe, meanwhile, more Chinese brands offering electric vehicles are beginning to enter the most advanced markets, such as Norway and the Netherlands, with plans to expand to the rest of the continent with very competitive offers in terms of price.

One way or another, the future of the automotive industry is electric, and the transition will take place during the remainder of this decade. You might want to think about it if you are weighing whether it’s time to buy an electric car this year.

 

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High-rise headaches: EV charging in Canada's condos, apartments and MURBs a mixed experience

Canada EV-ready rules for MURBs vary by city, with municipal bylaws dictating at-home Level 2 charging in condos, apartments, strata, and townhomes; BC leads, others evaluating updates to building codes.

 

Key Points

Municipal bylaws mandate EV-ready, Level 2 charging in multi-unit housing; requirements vary by city.

✅ No federal/provincial mandates; municipal bylaws set EV access.

✅ B.C. leads; many cities require 100% EV-ready residential stalls.

✅ Other cities are evaluating code changes; enforcement varies widely.

 

An absence of federal, provincial rules for EV charging in Canada’s condos, apartment buildings, strata or townhomes punts the issue to municipalities and leaves many strata owners to fend for themselves, finds Electric Autonomy’s cross-Canada guide to municipal building code regulations for EV charging in MURBs

When it comes to reducing barriers to electric vehicle adoption in Canada, one of the most critical steps governments can do is to help provide access to at-home EV charging.

While this is usually not a complicated undertaking in single-unit dwellings, in multi-unit residential buildings (MURBs) which includes apartments, condos, strata and townhomes, the situation and the experience is quite varied for Canadian EV drivers, and retrofitting condos can add complexity depending on the city in which they live.

In Canada, there are no regulations in the national building code that require new or existing condos, apartment buildings, strata or townhomes to offer EV charging. Provinces and territories are able to create their own building laws and codes, but none have added anything yet to support EV charging. Instead, some municipalities are provided with the latitude by their respective provinces to amend local bylaws and add regulations that will require multi-residential units — both new builds and existing ones — to be EV-ready.

The result is that the experience and process of MURB residents getting EV charging infrastructure access is highly fragmented across Canada.

In order to bring more transparency, Electric Autonomy Canada has compiled a roundup of all the municipalities in Canada with existing regulations that require all new constructions to be EV-ready for the future and those cities that have announced publicly they are considering implementing the same.

The tally shows that 21 cities in British Columbia and one city in both Quebec and Ontario have put in place some EV-ready regulations. There are eight other municipalities in Alberta, Saskatchewan, Ontario, Nova Scotia and Newfoundland evaluating their own building code amendments, including Calgary’s condo charging expansion initiatives across apartments and condos.

No municipalities in Manitoba, Prince Edward Island and New Brunswick have any regulations around this. City councils in Edmonton, Saskatoon, Hamilton, Sarnia, Halifax and St. John’s have started looking into it, but no regulations have officially been made.

British Columbia
B.C. is, by far, Canada’s most advanced province in terms of having mandates for EV charging access in condos, apartment buildings, strata or townhomes, leading the country in expanding EV charging with 20 cities with modified building codes to stipulate EV-readiness requirements and one city in the process of implementing them.

City of Vancouver: Bylaw 10908 – Section 10.2.3. was amended on July 1, 2014, to include provisions for Level 2 EV charging infrastructure at all residential and commercial buildings. On March 14, 2018, the bylaw was updated to adopt a 100 per cent EV-ready policy from 20 per cent to 100 per cent. The current bylaw also requires one EV-ready stall for single-family residences with garages and 10 per cent of parking stalls to be EV-ready for commercial buildings.

City of Burnaby: Zoning Bylaw 13903 – Section 800.8, which took effect on September 1st, required Level 2 energized outlets in all new residential parking spaces. This includes both single-family homes and multi-unit residential buildings. Parking spaces for secondary suites and visitor parking are exempt, but all other stalls in new buildings must be 100 per cent EV-ready.


City of Nelson: The city amended its Off-Street Parking and Landscaping Bylaw No. 3274 – Section 7.4 in 2019 to have at least one parking space per dwelling unit feature
Level 2 charging or higher in new single-family and multi-unit residential buildings, starting in 2020. For every 10 parking spaces available at a dwelling, two stalls must have Level 2 charging capabilities.

City of Coquitlam: The Zoning Bylaw No. 4905 – Section 714 was amended on October 29, 2018, to require all new construction, including single-family residences and MURBs, to have a minimum of one energized outlet capable of Level 2 charging or higher for every dwelling unit. Parking spaces designated for visitors are exempt.

If the number of parking spaces is less than the number of dwelling units, all residential parking spots must have an energized outlet with Level 2 or higher charging capabilities.

City of North Vancouver: According to Zoning Bylaw No. 6700 – Section 909, all parking spaces in all new residential multi-family buildings must include Level 2 EV charging infrastructure as of June 2019 and 10 per cent of residential visitor parking spaces must include Level 2 EV charging infrastructure as of Jan. 2022.

District of North Vancouver: Per the Electric Vehicle Charging Infrastructure Policy, updated on March 17, 2021, all parking stalls — not including visitor parking — must feature energized outlets capable of providing Level 2 charging or higher for multi-family residences.

City of New Westminster: As of April 1, 2019, all new buildings with at least one residential unit are required to have a Level 2 energized outlet to the residential parking spaces, according to Electric Vehicle Ready Infrastructure Zoning Bylaw 8040, 2018. Energized Level 2 outlets will not be required for visitor parking spaces.

City of Port Moody: Zoning Bylaw No. 2937 – Section 6.11 mandated that all spaces in new residential constructions starting from March 1, 2019, required an energized outlet capable of Level 2 charging. A minimum of 20 per cent of spaces in new commercial constructions from March 1, 2019, required an energized outlet capable of Level 2 charging.

City of Richmond: All new buildings and residential parking spaces from April 1, 2018, excluding those provided for visitors’ use, have had an energized outlet capable of providing Level 2 charging or higher to the parking space, says Zoning Bylaw 8500 – Section 7.15.

District of Saanich: Zoning Bylaw No. 8200 – Section 7 specified that all new residential MURBs are required to provide Level 2 charging after Sept. 1, 2020.

District of Squamish: Bylaw No. 2610, 2018 Subsection 41.11(f) required 100 per cent of off-street parking stalls to have charging infrastructure starting from July 24, 201, in any shared parking areas for multiple-unit residential uses.

City of Surrey: Zoning By-law No. 12000 – Part 5(7) was amended on February 25, 2019 to say builders must construct and install an energized electrical outlet for 100 per cent of residential parking spaces, with home and workplace charging rebates helping adoption, 50 per cent of visitor parking spaces, and 20 per cent of commercial parking spaces. Each energized electrical outlet must be capable of providing Level 2 or a higher level of electric vehicle charging

District of West Vancouver: Per Zoning Bylaw No. 4662 – Sections 142.10; 141.01(4), new dwelling units, all parking spaces for residential use, except visitor parking, need to include an energized outlet that is: (a) capable of providing Level 2 charging for an electric vehicle; (b) labelled for the use of electric vehicle charging.

City of Victoria: In effect since October 1, 2020, the Zoning Bylaw No. 80-159 – Schedule C Section 2.4 stipulates that all residential parking spaces in new residential developments must have an energized electrical outlet installed that can provide Level 2 charging for an electric vehicle, and residents can access EV charger rebates to offset costs. This requirement applies to both single-family and multi-unit residential dwellings but not visitor parking spaces.

Township of Langley: In Zoning Bylaw No. 2500 – Section 107.3, all new residential construction, including single-home dwellings, townhouses and apartments, required one space per dwelling unit to have EV charging requirements, starting from Nov. 4, 2019.

Town of View Royal: As per Zoning Bylaw No. 900 – Section 5.13, every commercial or multi-unit residential construction with more than 100 parking spots must provide an accessible electric vehicle charging station on the premises for patrons or residents. This bylaw was adopted on Feb. 2021.

Nanaimo: According to the Off-Street Parking Regulations Bylaw No. 7266 – Section 7.7, a minimum of 25 per cent of all off-street parking spots in any common parking area for multifamily residential housing must have shared access to a Level 2 EV charging, and have an electrical outlet box wired with a separate branch circuit capable of supplying electricity to support both Level 1 and Level 2 charging.

Port Coquitlam: For residential buildings that do not have a common parking area, one parking space per dwelling unit is required to provide “roughed-in” charging infrastructure, put in effect on Jan. 23, 2018. This must include an electrical outlet box located within three metres of the unit’s parking space, according to Zoning Bylaw No. 3630 – Section 2.5.10;11. For a residential building with a common parking area, a separate single utility electrical meter and disconnect should be provided in line with the electrical panel(s) intended to provide EV charging located within three metres of the parking space.

Maple Ridge: The city’s Bylaw No. 4350-1990 – Schedule F says for apartments, each parking space provided for residential use, excluding visitor parking spaces, will be required to have roughed-in infrastructure capable of providing Level 2 charging.

Apartments and townhouses with a minimum of 50 per cent of required visitor parking spaces will need partial infrastructure capable of Level 2 charging.

White Rock: The city is currently considering changes to its Zoning Bylaw, 2012, No. 2000. On March 18, 2021, the Environmental Advisory Committee presented recommendations that would require all resident parking stalls to be Level 2 EV-ready in new multi-unit residential buildings and 50 per cent of visitor parking stalls to be Level 2 EV-ready in new multi-unit residential buildings.

Kamloops: The city of Kamloops is looking to draft a zoning amendment bylaw that would require new residential developments, all new single-family, single-family with a secondary suite, two-family, and multi-family residential developments, to have EV-ready parking with one parking stall per dwelling unit, at the beginning of Jan. 1, 2023.

Kamloops’ sustainability services supervisor Glen Cheetham told Electric Autonomy Canada in an email statement that the city’s council has given direction to staff to “conduct one final round of engagement with industry before bringing the zoning amendment bylaw to Council mid-June for first and second reading, followed by a public hearing and third reading/approval.”

 

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Scores more wind turbines proposed for Long Island’s South Shore

New York Offshore Wind Expansion adds Equinor's Empire Wind 2 and Beacon Wind, boosting megawatts, turbines, and grid connections for Long Island and Queens, with jobs, assembly at South Brooklyn Marine Terminal, and clean energy.

 

Key Points

A statewide initiative proposing new Equinor and partner projects to scale offshore wind capacity, jobs, and grid links.

✅ Adds 2,490 MW via Empire Wind 2 and Beacon Wind

✅ Connects to Nassau County and Queens grids for reliability

✅ Creates 3,000+ NY jobs with South Brooklyn Marine Terminal work

 

Scores more 600-foot tall wind turbines would be built off Jones Beach under a new proposal.

Norwegian energy conglomerate Equinor has bid to create another 2,500 megawatts of offshore wind power for New York state and Long Island, where offshore wind sites are being evaluated, with two projects. One, which would connect to the local electric grid in Nassau County, would more than double the number of turbines off Long Island to some 200. A second would be built around 50 miles from Montauk Point and connect to the state grid in Queens. The plan would also include conducting assembly work in Brooklyn.

In disclosures Tuesday in response to a state request for proposals, Equinor said it would bolster its already state-awarded, 819-megawatt Empire Wind project off Long Island’s South Shore with another called Empire Wind 2 that will add 1,260 megawatts. Turbines of at least 10 megawatts each would mean that the prior project’s 80 or so turbines could be joined by another 120. Equinor’s federally approved lease area off Long Island encompasses some 80,000 acres, starting 15 miles due south of Long Beach and extending east and south.

Equinor on Tuesday also submitted plans to offer a second project called Beacon Wind that would be built 50 miles from Montauk Point, off the Massachusetts South Coast area. It would be 1,230 megawatts and connect through Long Island Sound to Queens.

Equinor said its latest energy projects would generate more than 3,000 New York jobs, including use of the South Brooklyn Marine Terminal for “construction activities” and an operations and maintenance base.

The new proposals came in response to a New York State Energy Research and Development Authority bid request for renewable projects in the state. In a statement, Siri Espedal Kindem, president of Equinor Wind U.S., said the company’s plans would include “significant new benefits for New York – from workforce training, economic development, and community benefits – alongside a tremendous amount of homegrown, renewable energy.”

Meanwhile, Denmark-based Orsted, working with New England power company Eversource, has also submitted plans for a new offshore wind project called Sunrise Wind 2, a proposal that includes “multiple bids” that would create “hundreds of new jobs, and infrastructure investment,” according to a company statement. Con Edison Transmission will also work to develop transmission facilities for that project, the companies said.

Orsted and Eversource already have contracts to develop a 130-megawatt wind farm for LIPA to serve the South Fork, and an 880-megawatt wind farm for the state. All of its hundreds of turbines would be based in a lease area off the coast of Massachusetts and Rhode Island, where Vineyard Wind has progressed as a key project.

“Sunrise Wind 2 will create good-paying jobs for New York, support economic growth, and further reduce emissions while delivering affordable clean energy to Long Island and the rest of New York,” Joe Nolan, executive vice president for Eversource, said in a statement.

 

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B.C. Hydro predicts 'bottleneck' as electric-vehicle demand ramps-up

B.C. EV Bottleneck signals a post-pandemic demand surge for electric vehicles amid semiconductor and lithium-ion battery shortages, driving waitlists, record sales, rebates, charging infrastructure needs, and savings on fuel and maintenance across British Columbia.

 

Key Points

B.C. EV bottleneck is rising demand outpacing supply from chip and battery shortages, creating waitlists.

✅ 85% delayed EV purchase; demand rebounds with reopening.

✅ Supply chain limits: chips and lithium-ion batteries.

✅ Plan ahead: join waitlists, consider used EVs, claim rebates.

 

B.C. Hydro is warning of a post-pandemic “EV bottleneck” as it predicts pent-up demand and EV shortages will lead to record-breaking sales for electric vehicles in 2021.

A new survey by B.C. Hydro found 85 per cent of British Columbians put off buying an electric vehicle during the pandemic, but as the province reopens, the number of people on the road commuting to-and-from work and school is expected to rise 15 per cent compared with before the pandemic.

It found about two-thirds of British Columbians are considering buying an EV over the next five years, with 60 per cent saying they would go with an EV if they can get one sooner.

“The EV market is at a potential tipping point, as demand is on the rise and will likely continue to grow long-term, with one study projecting doubling power output to meet full road electrification,” said a report about the findings released Wednesday.

The demand for EVs is prompted by rising gas prices, environmental concerns and to save money on maintenance costs like oil changes and engine repairs, said the report. At the same time, a shortage of semiconductor chips and lithium ion batteries needed for auto production is squeezing supply.

For people wanting to make the switch to electric, B.C. Hydro recommended they plan ahead and get on several waiting lists and explore networks offering faster charging options. Used EVs are also a cheaper option.

B.C. Hydro said an electric vehicle can save 80 per cent in gas expenses over a year and about $100 a month in maintenance costs compared with a gas-powered vehicle. There are also provincial and federal rebates of up to $8,000 for EV purchases in B.C., and additional charger rebates can help with installation costs.

B.C. has the highest electric vehicle uptake in North America, with zero-emission vehicles making up almost 10 per cent of all car sales in the province in 2020 as the province expands EV charging to support growth — more than double the four per cent in 2018.

According to a report by University of B.C. business Prof. Werner Antweiler on the state of EV adoption in B.C., electric vehicles are still concentrated in urban areas like Metro Vancouver and the Capital Regional District on Vancouver Island where public charging stations are more readily available.

He said electric vehicle purchases are still hampered by limited choice and a lack of charging stations, especially for people who park on the street or in condo parkades, which would require permission from strata councils to install a charging station, though rebates for home and workplace charging can ease installation.

The online survey was conducted by market researcher Majid Khoury of 800 British Columbians from May 17-19. It has a margin of error of plus-or-minus 3.5 per cent, 19 times out of 20.

 

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U.S. to work with allies to secure electric vehicle metals

US EV Battery Minerals Strategy prioritizes critical minerals with allies, lithium and copper sourcing, battery recycling, and domestic processing, leveraging the Development Finance Corporation to strengthen EV supply chains and reduce reliance on China.

 

Key Points

A US plan to secure critical minerals with allies, boost recycling, and expand domestic processing for EV batteries.

✅ DFC financing for allied lithium and copper projects

✅ Battery recycling to diversify critical mineral supply

✅ Domestic processing with strong environmental standards

 

The United States must work with allies to secure the minerals needed for electric vehicle batteries, addressing pressures on cobalt reserves that could influence supply, and process them domestically in light of environmental and other competing interests, the White House said on Tuesday.

The strategy, first reported by Reuters in late May, will include new funding to expand international investments in electric vehicles (EV) metal projects through the U.S. Development Finance Corporation, as well as new efforts to boost supply from EV battery recycling initiatives.

The U.S. has been working to secure minerals from allied countries, including Canada and Finland, with projects such as Alberta lithium development showing potential. The 250-page report outlining policy recommendations mentioned large lithium supplies in Chile and Australia, the world's two largest producers of the white battery metal.

President Joe Biden's administration will also launch a working group to identify where minerals used in EV batteries and other technologies can be produced and processed domestically.

Securing enough copper, lithium and other raw materials to make EV batteries, amid lithium supply concerns heightened by recent disruptions, is a major obstacle to Biden’s aggressive EV adoption plans, with domestic mines facing extensive regulatory hurdles and environmental opposition.

The White House acknowledged China's role as the world's largest processor of EV metals and said it would expand efforts, including a 100% EV tariff on certain imports, to lessen that dependency.

"The United States cannot and does not need to mine and process all critical battery inputs at home. It can and should work with allies and partners to expand global production and to ensure secure global supplies," it said in the report.

The White House also said the Department of the Interior and others agencies will work to identify gaps in mine permitting laws to ensure any new production "meets strong standards" in terms of both the environment and community input.

The report noted Native American opposition to Lithium Americas Corp's (LAC.TO) Thacker Pass lithium project in Nevada, as well as plans by automaker Tesla Inc (TSLA.O) to produce its own lithium.

The steps come after Biden, who has made fighting climate change and competing with China centerpieces of his agenda, ordered a 100-day review of gaps in supply chains in key areas, including EVs.

Democrats are pushing aggressive climate goals, as Canada EV manufacturing accelerates in parallel, to have a majority of U.S.-manufactured cars be electric by 2030 and every car on the road to be electric by 2040.

As part of the recommendations from four executive branch agencies, Biden is being advised to take steps to restore the country's strategic mineral stockpile and expand funding to map the mineral resources available domestically.

Some of those steps would require the support of Congress, where Biden's fellow Democrats have only slim majorities.

The Energy Department already has $17 billion in authority through its Advanced Technology Vehicles Manufacturing Loan program to fund some investments, and is also launching a lithium-battery workforce initiative to build critical skills.

The program’s administrators will focus on financing battery manufacturers and companies that refine, recycle and process critical minerals, the White House said.

 

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