Canada is falling behind the U.S. on building up an EV supply chain. Let that be a wake-up call

The global shift to clean energy is picking up pace, and countries like the United States are making bold moves to lock in their positions. The U.S. Department of Energy recently announced over $3 billion in funding to boost America’s battery manufacturing and create over 12,000 jobs, all part of a broader U.S. strategy to strengthen its EV supply chain. Meanwhile, Canada faces pressure to step up and act or risk falling behind in this fast-moving landscape.
Canada’s EV supply chain isn’t yet where it needs to be. Despite significant investments from major players like Volkswagen, Northvolt and Stellantis to build gigafactories, there remains a considerable gap in the development of the mineral production needed to support them.
To meet the demand, we would need to open 15 new mines by 2035, yet only three with the capacity to produce battery materials have opened in the past 15 years. This gap highlights the urgent need to ramp up mining operations if Canada wants to stay competitive in the race for critical minerals like lithium, graphite, and nickel.
Last month, industry leaders gathered in Windsor, Ont. to tackle these challenges and explore solutions. This meeting was important, as the government and industry continue to work together to figure out how to speed up mineral and material development, attract private investment, grow our manufacturing sectors, and streamline regulatory processes. Canada needs to keep pushing to secure its role in the global EV supply chain and make the most of our resources and potential.
Meanwhile, the U.S. is showing how decisive action can make all the difference. The Biden-Harris Administration’s latest move is part of a larger strategic approach to building out its capacity from mining to manufacturing to recycling as it strives to catch up to China. This is unlikely to change regardless of who wins on Nov. 5. If Canada wants to stay in the game and be a central part of a thriving North American industry that relies less on imports, we must follow suit.
This means strategically accelerating mining operations and battery-material production and creating a regulatory environment that supports the efficient development of new projects, from natural resource development to advanced manufacturing. Without this, Canada is at risk of losing the momentum we have gained this decade.
To date, Canadian governments have committed $35 billion in public subsidies to support a domestic EV sector. That’s a big number, but this is hardly the only industry in Canada to benefit from significant public support. And the fact is that amount won’t be enough on its own.
An internal federal government report recently showed that an additional $24 billion is needed to develop Canada’s battery infrastructure fully. This level of investment is essential to prevent gigafactory operators from looking elsewhere for their materials, which would undermine the advantages of building EV plants in Canada in the first place.
More than money, industry and government need to work together to articulate a strategic industrial approach that guides our investments and a shared vision of what we want to achieve and in what time frame. At the Windsor meeting, industry leaders began developing priorities that, if followed, would produce more Canadian resources, manufacturing, intellectual property, Canadian jobs and higher relevance to the North American and global EV industry.
The aggressive action taken by the U.S. to strengthen its domestic EV supply chain should serve as a wake-up call for Canada. Our country has the resources and the potential to be an EV industry leader, but we must keep building on our successes. The clock is ticking on building out the necessary infrastructure, reforming regulatory processes, and attracting private investment.
The message from industry leaders is clear: Canada can’t afford to wait. With global competitors moving fast and the demand for EVs growing daily, the window of opportunity is closing. If Canada doesn’t rise to the challenge, it risks being left behind in one of the most significant industrial shifts of our time. The decisions made today will shape Canada’s future in the global EV supply chain and determine its role in the clean energy economy for decades to come.