Deal announcements have been coming in left, right, and centre from car and battery companies as they realize the potential upside of establishing mining, processing, and production facilities in Canada to get access to the North American market.
Placing these developments on a map, along with existing and proposed mining projects for the key elements needed (Lithium, Cobalt, Nickel, Graphite), a battery development corridor emerges. We can visualise the supply chain; mining in the north, processing and cell production in the south closer to the border.
There is an important opportunity for Canadian companies to participate and have their slice of the expanding pie. We already have some leading battery producers, such as Nano One Materials Corp. TSX: NANO and Ionomr Innovations Inc. who are taking the challenge head on. Li-Cycle is taking on the recycling of batteries to ensure the sustainability of the industry. It would be quite the achievement to see an all-Canadian battery produced, from raw elements to the finished product, all done by Canadian participants.
While the production market is being capitalized on, secondary and ancillary market opportunities are still up for grabs. Mining, battery, and automotive production are all capital-intensive projects with high barriers to entry. This is less so for supporting products and services.
There are countless opportunities to provide products and services that are synergistic with the growth of the sector. Areas such as IIoT, data intelligence, supply chain management, robotics, transportation, trucking, and charging infrastructure should all be looked at for an entry or growth opportunity.
There’s already activity within VC firms for funding startups in the space. McRock Capital has a profile in IIoT investments. BDC venture arm has funds that tackle cleantech and industrial innovation. Aligned Climate Capital has funded Canadian charging infrastructure startups. Even Ontario Power Generation is supporting the space with PowerON Energy Solutions for the development of electric fleet deployment/management. Sustainable Development Technology Canada – Technologies du Développement Durable Canada is well known for supporting many cleantech, data intelligence, and battery companies.
Opportunities also exist in research and development to maintain our advantage in innovation and intellectual property. The University of Calgary and Dalhousie University have excellent programs in the battery space. The University of British Columbia and University of Alberta are world leaders in mining. Topics like battery efficiency, reduction in the environmental impact of the supply chain, and future battery technologies will all be critical in the continued success of the sector.
