Renewables Projected to Soon Be One-Fourth of US Electricity Generation

EV battery supply strategies weigh in-house cell manufacturing against supplier contracts, optimizing costs, scale, and supply-chain resilience for electric vehicles. Automakers like Tesla, GM-LG Chem, VW-Northvolt, and Ford balance gigafactories, joint ventures, and procurement risks.

Key Points

How automakers secure EV battery cells by balancing cost, scale, tech risk, and supply-chain control to meet demand.

✅ In-source cells via gigafactories, JVs, and proprietary chemistries

✅ Contract with LG Chem, Panasonic, CATL, SKI to diversify supply

✅ Manage costs, logistics, IP, and technology obsolescence risks

Auto makers, pumping billions of dollars into developing electric cars, are now facing a critical inflection point as they decide whether to get more involved with manufacturing the core batteries or buy them from others.

Batteries are one of an electric vehicle’s most expensive components, accounting for between a quarter and a third of the car’s value. Driving down their cost is key to profitability, executives say.

But whereas the internal combustion engine traditionally has been engineered and built by auto makers themselves, battery production for electric cars is dominated by Asian electronics and chemical firms, such as LG Chem Ltd. and Panasonic Corp. , and newcomers like China’s Contemporary Amperex Technology Co.

California, the U.S.’s largest car market, said last month it would end the sale of new gasoline- and diesel-powered passenger cars by 2035, putting pressure on the auto industry to accelerate its shift to electric vehicles in the coming years.

The race to lock in supplies for electric cars has auto makers taking varied paths, with growing Canada-U.S. collaboration across supply chains.

While most make the battery pack, a large metal enclosure often lining the bottom of the car, they also need the cells that are bundled together to form the core electricity storage.

Tesla several years ago opened its Gigafactory in Nevada to make batteries with Panasonic, which in the shared space would produce cells for the packs. The electric-car maker wanted to secure production specifically for its own models and lower manufacturing and logistics costs.

Now it is looking to in-source more of that production.

While Tesla will continue to buy cells from Panasonic and other suppliers, it is also working on its own cell technology and production capabilities, aiming for cheaper, more powerful batteries to ensure it can keep up with demand for its cars, said Chief Executive Elon Musk last month.

Following Tesla’s lead, General Motors Co. and South Korea’s LG Chem are putting $2.3 billion into a nearly 3-million-square-foot factory in Lordstown, Ohio, highlighting opportunities for Canada to capitalize on the U.S. EV pivot as supply chains evolve, which GM says will eventually produce enough battery cells to outfit hundreds of thousands of cars each year.

In Europe, Volkswagen AG is taking a similar path, investing about $1 billion in Swedish battery startup Northvolt AB, including some funding to build a cell-manufacturing plant in Salzgitter, Germany, as part of a joint venture, and in North America, EV assembly deals in Canada are putting it in the race as well.

Others like Ford Motor Co. and Daimler AG are steering clear of manufacturing their own cells, with executives saying they prefer contracting with specialized battery makers.

Supply-chain disruptions, including lithium shortages, have already challenged some new model launches and put projects at risk, auto makers say.

For instance, Ford and VW have agreements in place with SK Innovation to supply battery cells for future electric-vehicle models. The South Korean company is building a factory in Georgia to help meet this demand, but a fight over trade secrets has put the plant’s future in jeopardy and could disrupt new model launches, both auto makers have said in legal filings.

GM executives say the risk of relying on suppliers has pushed them to produce their own battery cells, albeit with LG Chem.

“We’ve got to be able to control our own destiny,” said Ken Morris, GM’s vice president of electric vehicles.

Bringing the manufacturing in house will give the company more control over the raw materials it purchases and the battery-cell chemistry, Mr. Morris said.

But establishing production, even in a joint venture, is a costly proposition, and it won’t necessarily ensure a timely supply of cells. There are also risks with making big investments on one battery technology because a breakthrough could make it obsolete.

Ford cites those factors in deciding against a similar investment for now.

The company sees the industry’s conventional model of contracting with independent suppliers to build parts as better suited to its battery-cell needs, Ford executive Hau Thai-Tang told analysts in August.

“We have the competitive tension with dealing with multiple suppliers, which allows us to drive the cost down,” Mr. Thai-Tang said, adding that the company expects to pay prices for cells in line with GM and Tesla.

Meanwhile, Ford can leave the capital-intensive task of conducting the research and setting up manufacturing facilities to the battery companies, Mr. Thai-Tang said.

Germany’s Daimler has tried both strategies.

The car company made its own lithium-ion cells through a subsidiary until 2015. But the capital required to scale up was better spent elsewhere, said Ola Källenius, Daimler’s chief executive officer.

The auto maker instead signed long-term supply agreements with Asian companies like Chinese battery-maker CATL and Farasis Energy (Ganzhou) Co., which Daimler invested in last year.

The company has said it is spending roughly $23.6 billion on purchase agreements but keeping its battery research in-house.

“Let’s rather put that capital into what we do best, cars,” Mr. Källenius said.

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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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Nova Scotia’s West Wind Clean Energy Project aims to harness offshore wind power to deliver renewable electricity, expand transmission infrastructure, and position Canada as a global leader in sustainable energy generation.

What is West Wind Clean Energy?

The West Wind Clean Energy Project is Nova Scotia’s $60-billion offshore wind initiative to generate up to 66 GW of clean electricity for Canada’s growing energy needs.

✅ Harnesses offshore wind resources for renewable power generation

✅ Expands grid and transmission infrastructure for clean energy exports

✅ Supports Canada’s transition to a sustainable, low-carbon economy

Nova Scotia has launched one of the most ambitious clean energy projects in Canadian history — a $60-billion plan to build 66 gigawatts (GW) of offshore wind capacity, as countries like the UK expand offshore wind, capable of meeting up to 27 per cent of the nation’s total electricity demand.

Premier Tim Houston unveiled the project, called West Wind, in June, positioning it as a cornerstone of Canada’s broader energy transition and aligning it with Prime Minister Mark Carney’s goal of making the country both a clean energy and conventional energy superpower. Three months later, Carney announced a slate of “nation-building” infrastructure projects the federal government would fast-track. While West Wind was not on the initial list, it was included in a second tier of high-potential proposals still under development.

The plan’s scale is unprecedented for Canada’s offshore energy industry, as organizations like Marine Renewables Canada pivot toward offshore wind to accelerate growth. However, enormous logistical, financial, and market challenges remain. Turbines will not be in the water for years, and the global offshore wind industry itself is facing one of its most difficult periods in over a decade.

“Right now is probably the worst time in 15 years to launch a project like this,” said an executive at a Canadian energy company who requested anonymity. “It’s not Nova Scotia’s fault. It’s just really bad timing.” He pointed to failed offshore wind auctions in Europe, rising costs, and policy reversals in the United States as troubling signals for investors, even as New York’s largest offshore wind project moved ahead this year. “You can’t build the wind and hope the lines come later. You have to build both — together.”

Indeed, transmission infrastructure is emerging as the project’s biggest obstacle. Nova Scotia’s local electricity demand is limited, meaning most of the power would need to be sold to markets in Ontario, Quebec, and New England. Of the $60 billion budgeted for West Wind, $40 billion is allocated to generation, and $20 billion to new transmission — massive sums that require close federal-provincial coordination and long-term investment planning.

Despite the economic headwinds, advocates argue that West Wind could transform Atlantic Canada’s energy landscape and strengthen national energy security, building on recent tidal power investments in Nova Scotia. Peter Nicholson, chair of the Canadian Climate Institute and author of Catching the Wind: How Atlantic Canada Can Become an Energy Superpower, believes the project could redefine Nova Scotia’s role in Canada’s energy transition.

“It’s very well understood where the world is headed,” Nicholson said, noting that wind power is becoming increasingly competitive worldwide. “We’re moving toward an electrical future that’s cleanly generated for economic, environmental, and security reasons. But for that to happen, the economics have to work.” He added that the official “nation-building” designation could give Nova Scotia “a seat at the table” with major utilities in other provinces.

The governments of Canada and Nova Scotia recently issued a notice of strategic direction to the Canada–Nova Scotia Offshore Energy Regulator, aligning with Ottawa’s plan to regulate offshore wind as it begins a prequalification process and designs a call for bids later this year. The initial round will cover just 3 GW of capacity — smaller than the originally envisioned 5 GW — but officials describe it as a first step in a multi-decade plan.

While timing and economics remain uncertain, supporters insist the long-term potential of offshore wind in Nova Scotia is too significant to ignore. As global demand for clean electricity grows and offshore wind moves toward a trillion-dollar global market, they argue, West Wind could help secure Canada’s place as a renewable energy leader — if government and industry can find a way to make the numbers work.

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Harbour Air Electric Aircraft Project advances zero-emission aviation with CleanBC Go Electric ARC funding, converting seaplanes to battery-electric power, cutting emissions, enabling commercial passenger service, and creating skilled clean-tech jobs through R&D and electrification.

Key Points

Harbour Air's project electrifies seaplanes with CleanBC ARC support to enable zero-emission flights and cut emissions.

✅ $1.6M CleanBC ARC funds seaplane electrification retrofit

✅ Target: passenger-ready, zero-emission commercial service

✅ Creates 21 full-time clean-tech jobs in British Columbia

B.C.’s Harbour Air Seaplanes is building on its work in clean technology to decarbonize aviation, part of an aviation revolution underway, and create new jobs with support from the CleanBC Go Electric Advanced Research and Commercialization (ARC) program.

”Harbour Air is decarbonizing aviation and elevating the company to new altitudes as a clean-technology leader in B.C.'s transportation sector,” said Bruce Ralston, Minister of Energy, Mines and Low Carbon Innovation. “With support from our CleanBC Go Electric ARC program, Harbour Air's project not only supports our emission-reduction goals, but also creates good-paying clean-tech jobs, exemplifying the opportunities in the low-carbon economy.”

Harbour Air is receiving almost $1.6 million from the CleanBC Go Electric ARC program for its aircraft electrification project. The funding supports Harbour Air’s conversion of an existing aircraft to be fully electric-powered and builds on its successful December 2019 flight of the world’s first all-electric commercial aircraft, and subsequent first point-to-point electric flight milestones.

That flight marked the start of the third era in aviation: the electric age. Harbour Air is working on a new design of the electric motor installation and battery systems to gain efficiencies that will allow carrying commercial passengers, as it eyes first electric passenger flights in 2023. Approximately 21 full-time jobs will be created and sustained by the project.

“CleanBC is helping accelerate world-leading clean technology and innovation at Harbour Air that supports good jobs for people in our communities,” said George Heyman, Minister of Environment and Climate Change Strategy. “Once proven, the technology supports a switch from fossil fuels to advanced electric technology, and will provide a clean transportation option, such as electric ferries, that reduces pollution and shows the way forward for others in the sector.”

Harbour Air is a leader in clean-technology adoption. The company has also purchased a fully electric, zero-emission passenger shuttle bus to pick up and drop off passengers between Harbour Air’s downtown Vancouver and Richmond locations, and the Vancouver International Airport, where new EV chargers support travellers.

“It is great to see the Province stepping up to support innovation,” said Greg McDougall, Harbour Air CEO and ePlane test pilot. “This type of funding confirms the importance of encouraging companies in all sectors to focus on what they can be doing to look at more sustainable practices. We will use these resources to continue to develop and lead the transportation industry around the world in all-electric aviation.”

In total, $8.18 million is being distributed to 18 projects from the second round of CleanBC Go Electric ARC program funding. Recipients include Damon Motors and IRDI System, both based on the Lower Mainland. The 15 other successful projects will be announced this year.

The CleanBC Go Electric ARC program supports the electric vehicle (EV) sector in B.C., which leads the country in going electric, by providing reliable and targeted support for research and development, commercialization and demonstration of B.C.-based EV technologies, services and products.

“This project is a great example of the type of leading-edge innovation and tech advancements happening in our province,” said Brenda Bailey, Parliamentary Secretary for Technology and Innovation. “By further supporting the development of the first all-electric commercial aircraft, we are solidifying our position as world leaders in innovation and using technology to change what is possible.”

The CleanBC Roadmap to 2030 is B.C.’s plan to expand and accelerate climate action, including a major hydrogen project, building on the province’s natural advantages – abundant, clean electricity, high-value natural resources and a highly skilled workforce. It sets a path for increased collaboration to build a British Columbia that works for everyone.

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EVI-Pro Lite EV Load Forecasting helps utilities model EV charging infrastructure, grid load shapes, and resilient energy systems, factoring home, workplace, and public charging behavior to inform planning, capacity upgrades, and flexible demand strategies.

Key Points

A NREL tool projecting EV charging demand and load shapes to help utilities plan the grid and right-size infrastructure.

✅ Visualizes weekday/weekend EV load by charger type.

✅ Tests home, workplace, and public charging access scenarios.

✅ Supports utility planning, demand flexibility, and capacity upgrades.

As electric vehicles (EVs) continue to grow in popularity, utilities and community planners are increasingly focused on building resilient energy systems that can support the added electric load from EV charging, including a possible EV-driven demand increase across the grid.

But forecasting the best ways to adapt to increased EV charging can be a difficult task as EV adoption will challenge state power grids in diverse ways. Planners need to consider when consumers charge, how fast they charge, and where they charge, among other factors.

To support that effort, researchers at the National Renewable Energy Laboratory (NREL) have expanded the Electric Vehicle Infrastructure Projection (EVI-Pro) Lite tool with more analytic capabilities. EVI-Pro Lite is a simplified version of EVI-Pro, the more complex, original version of the tool developed by NREL and the California Energy Commission to inform detailed infrastructure requirements to support a growing EV fleet in California, where EVs bolster grid stability through coordinated planning.

EVI-Pro Lite’s estimated weekday electric load by charger type for El Paso, Texas, assuming a fleet of 10,000 plug-in electric vehicles, an average of 35 daily miles traveled, and 50% access to home charging, among other variables, as well as potential roles for vehicle-to-grid power in future scenarios. The order of the legend items matches the order of the series stacked in the chart.

Previously, the tool was limited to letting users estimate how many chargers and what kind of chargers a city, region, or state may need to support an influx of EVs. In the added online application, those same users can take it a step further to predict how that added EV charging will impact electricity demand, or load shapes, in their area at any given time and inform grid coordination for EV flexibility strategies.

“EV charging is going to look different across the country, depending on the prevalence of EVs, access to home charging, and the kind of chargers most used,” said Eric Wood, an NREL researcher who led model development. “Our expansion gives stakeholders—especially small- to medium-size electric utilities and co-ops—an easy way to analyze key factors for developing a flexible energy strategy that can respond to what’s happening on the ground.”

Tools to forecast EV loads have existed for some time, but Wood said that EVI-Pro Lite appeals to a wider audience, including planners tracking EVs' impact on utilities in many markets. The tool is a user-friendly, free online application that displays a clear graphic of daily projected electric loads from EV charging for regions across the country.

After selecting a U.S. metropolitan area and entering the number of EVs in the light-duty fleet, users can change a range of variables to see how they affect electricity demand on a typical weekday or weekend. Reducing access to home charging by half, for example, results in higher electric loads earlier in the day, although energy storage and mobile charging can help moderate peaks in some cases. That is because under such a scenario, EV owners might rely more on public or workplace charging instead of plugging in at home later in the evening or at night.

“Our goal with the lite version of EVI-Pro is to make estimating loads across thousands of scenarios fast and intuitive,” Wood said. “And if utilities or stakeholders want to take that analysis even deeper, our team at NREL can fill that gap through partnership agreements, too. The full version of EVI-Pro can be tailored to develop detailed studies for individual planners, agencies, or utilities.”

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British Columbia Green Infrastructure Funding expands CleanBC Communities Fund projects, from EV charging stations to sewage heat recovery, delivering low-carbon heat in Vancouver and supporting Indigenous communities and COVID-19 recovery through the Green Infrastructure Stream.

Key Points

A joint federal-provincial program backing CleanBC to fund EV chargers, sewage heat recovery, and low-carbon heat.

✅ Funds EV charging across Vancouver Island and northern B.C.

✅ Expands sewage heat recovery via Vancouver's NEU

✅ Joint federal, provincial, local, and Indigenous partners

The governments of Canada and British Columbia are investing in infrastructure to get projects under way that meet people's needs, address the effects of the COVID-19 pandemic, and help communities restart their economies.  

Strategic investments in green infrastructure are key to creating clean healthy communities, making life more affordable, and building a clean electricity future for Canada.

Today, the Honourable Jonathan Wilkinson, Minister of Environment and Climate Change and Member of Parliament for North Vancouver, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities, and the Honourable George Heyman, B.C. Minister of Environment and Climate Change Strategy, announced funding for 11 projects, alongside initiatives like the province's hydrogen project, to help B.C. communities save energy and reduce pollution.  

In Vancouver, the Sewage Heat Recovery Expansion Project will increase the capacity of the Neighbourhood Energy Utility (NEU) to provide buildings in the False Creek area with low-carbon heat and hot water. The NEU recycles waste heat and uses a mix of renewable and conventional natural gas to reduce harmful emissions.

Funding is also going towards expanding the network of Level-2 electric vehicle (EV) charging stations across the province. More than 80 new stations will be installed in communities across mid-Vancouver Island, as well as northern and central B.C., making clean transportation options, supported by incentives for zero-emission vehicles, more viable for more people.

These, along with the other projects announced today, will create jobs and strengthen local economies now while promoting sustainable growth and residents' long-term health and well-being.

The Government of Canada is investing more than $28.5 million in these projects through the Green Infrastructure Stream (GIS) of the Investing in Canada plan, and local and Indigenous communities are contributing more than $13 million. The Government of British Columbia is contributing nearly $18 million through the CleanBC Communities Fund, part of the federal Investing in Canada plan's Green Infrastructure Stream, which also supports rebates for home and workplace charging initiatives.

Quotes

"Expanding electric vehicle charging stations across Vancouver Island will make clean transportation more viable for more people. Encouraging green energy solutions like this is essential to building strong resilient communities. Canada's Infrastructure plan invests in thousands of projects, creates jobs across the country, and builds stronger communities."

The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change and Member of Parliament for North Vancouver, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities

"This investment through the Green Infrastructure Stream is a great example of how federal partnerships with all levels of government can ensure a sustainable future for generations. Amidst COVID-19, we can rebuild better with a green recovery."

Hedy Fry, Member of Parliament for Vancouver Centre

"People deserve access to clean air, clean energy and clean economic opportunities and by investing in new clean infrastructure projects, we will reduce pollution, build better buildings, improve transportation options with EV charger rebates and make life more affordable for people. By working together with the City of Vancouver and other B.C. communities, along with the federal government, we're helping build back a stronger, better B.C. for everyone following the impacts of COVID-19 through our CleanBC plan."

The Honourable George Heyman, Minister of Environment and Climate Change Strategy Government

"This is an important investment when it comes to addressing the climate emergency our city is facing. Nearly 60 per cent of carbon pollution created in Vancouver comes from burning natural gas to heat our buildings and provide hot water. This investment from our provincial and federal partners will help us greatly expand the Neighbourhood Energy Utility to reduce our carbon footprint even further."

His Worship, Kennedy Stewart, Mayor of Vancouver

Quick facts

Through the Investing in Canada Plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada's rural and northern communities.
The Government of Canada has invested $4.2 billion in 525 infrastructure projects across British Columbia under the Investing in Canada plan.
To support Canadians and communities during the COVID-19 pandemic, a new stream has been added to the over $33-billion Investing in Canada Infrastructure Program to help fund pandemic-resilient infrastructure. Existing program streams have also been adapted to include more eligible project categories.
The new Canada Healthy Communities Initiative will provide up to $31 million in existing federal funding to support communities as they deploy innovative ways to adapt spaces and services to respond to immediate and ongoing needs arising from COVID-19 over the next two years.
The 11 projects are part of the first intake of the CleanBC Communities Fund, which committed more than $63 million in joint federal-provincial funding. Additional projects from the first intake will be announced soon.
The second intake for the CleanBC Communities Fund is now open for applications from local governments, Indigenous groups, not-for-profits and for-profit organizations in B.C.

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