EV Canada Newsletter - Issue #12

Weekly Recap Issue #12 - Tuesday, April 5th, 2022

Canada

Magna to build EV battery housing plant in Ontario to supply Ford F-150 Lightning.

Magna International, a Canadian automotive supplier has released a statement indicating that they spend $40-Million to construct the industry’s largest lightweight aluminum battery enclosure in Chatham, Ontario, calling it 'game-changing.'

The new 170,000-square-foot facility is expected to create up to 150 new jobs, and it's product will cut total weight of the vehicle which, in turn, will increase the vehicles range capabilities. The factory will provide Ford Motor Co. with battery enclosures, specifically for the Ford F-150 Lighting electric pick up truck.

Due to demand, Ford Motor Co. has limited global reservations for the pickup at almost 200,000 units, but has not said how many of those reservations have converted to actual orders.

The new factory will initially produce 60,000 battery enclosures per year and then expand to upwards of 120,000 units annually.

Vale SA to supply Tesla with Nickel from Canada.

The Russian invasion of Ukraine has had a tremendous effect over the supply of nickel, a critical ingredient in EV batteries.

Russia is one of the world's largest producers of nickel accounting for 17% of the global capacity. Prices of nickel have been, at some points during the month of March, triple the regular price. So how has the largest EV producer been dealing with this crisis?

Reportedly, Tesla has been signing deals will several nickel producers since 2021 in an effort to secure it's own nickel supply which aligns with Elon Musk's vision on vertical integration to maintain control of Tesla's supply chain. Most notable, Tesla has signed a multi-year contract with mining giant Vale SA to provide nickel from Canada.

As opposed to most EV makers, Tesla has spent years focusing on how to secure its own nickel supplies as part of Elon Musk's focus on vertical integration to maintain control over the company's supply chain.

Aside from the deal with Vale, Tesla has several other contracts with nickel mining companies, all forged over the last year. In January, the EV maker committed to buy 75,000 metric tons of nickel concentrate from a project being developed in Minnesota by Talon Metals Corp.

"People don't realize how far ahead Tesla is when it comes to securing the supply chain for raw materials and an integrated approach to battery materials."

-Todd Malan, spokesman for Talon Metals

While the Brazil-based miner didn't comment on its agreement with Tesla, it said that it plans to increase its sales to the EV market to 30-40% from 5%.

Earlier agreements are with the world’s biggest mining company, BHP Group, for material from Australia, and the operators of a nickel mine in New Caledonia.

The Tesla CEO, Elon Musk has repeated that nickel supply was the company's biggest concern as it boosts production. He is right to be worried as demand for nickel for the battery sector is expected to rise to about 1.5 million tons in 2030 from 400,745 tons this year.

Canada’s emission reduction plan… is it a hit or miss for EVs?

Canada has announced a $9 billion “2030 emissions reduction plan” with the goal of decreasing Canada’s emissions. The plan includes a mandate of 20% zero-emission new light-duty vehicle sales in 2026, rising to 60% by 2030 and 100% by 2035.

The plan also mandates “zero-emission” medium- and heavy-duty vehicle sales of 35% by 2030 and 100% by 2040, with possible exceptions based on feasibility of particular applications. The government is exploring the possibility of additional mid-2020 interim targets for these vehicles.

To achieve this goal, $400 million will be invested to add 50,000 EV chargers to Canada’s charging network. The Canada Infrastructure Bank will invest an additional $500 million into EV charging infrastructure.

Canadians can currently get up to $5,000 back on the purchase of a “zero emission” vehicle through Canada’s iZEV program. This plan spends an additional $1.7 billion to extend these incentives for Canadian EV purchasers.

In Canada, transportation is the second-largest sector for emissions, right behind oil and gas. Canada’s electricity is generally very low emissions, with about 60% generated from hydropower. Coal and gas combined make up only one-sixth of Canada’s electricity generation, about the same amount as nuclear, with most of the remainder being produced by wind. Canada will need to add more electricity generation to serve their transportation (and building electrification) goals, and the plan invests $850 million in programs serving that goal.

Canada still has quite high emissions per capita, roughly the same as the US. Mostly due to high transportation emissions from a highly suburban and rural population, and due to the oil and gas sector, which is a large chunk of their economy and makes up about a fifth of the country’s exports.

There are many questions that remain with respect to details on the plan, such as where do Plug-In Hybrids fall into the equation? Will there be support for manufacturers to increase their EV output due to material shortage? Will more incentives be announced to help promote EV adoption?

Have thoughts on Canada’s Emission Reduction Plan? Share them on our subreddit at https://reddit.com/r/EVCanada

EV Around the World 🌏

How is 2022 going for EV Manufacturers? (Snapshot).

CATL improves cell-to-pack technology.

Cell-to-pack refers to the direct integration of cells into a battery pack, without the modules used in most current pack designs. CATL indicates that in the latest iteration of this tech, known internal as the Qilin Battery, can deliver 13% more power than the 4680-format cells Tesla is shifting to, for the same volume.

As reported by Green Car Reports, the 4680 cells are larger versions of the cylindrical cells Tesla currently uses, something CEO Elon Musk has said will unlock cost savings. The automaker plans to start using them in production vehicles beginning with Model Y crossovers assembled at its new Texas plant.

CATL also claims cost-effectiveness is an advantage of its cell-to-pack tech. A company press release said cell-to-pack will provide "a balance between long range and economical efficiency." The company has already made agreements with several automakers for the tech, including Hyundai, Kia, and Genesis. However, no automaker has confirmed a production model that will make use of the tech.

Cell-to-pack isn't the only revolutionary piece of battery tech CATL claims to have in its arsenal. The company has said that it has the technology for million-mile, 16-year batteries, and it has teased some attractive specs and performance for future sodium-ion cells.

CATL also earlier this year rolled out a new battery-swapping solution. Called Evogo, it's a standalone business built around swap-friendly packs that all for one-minute swaps, according to CATL.

New Electric Vehicles:

Lotus Eletre

Ferrari Purosangue

US President Joe Biden has executed a plan to help Americans navigate the current energy crisis. 

President Biden has invoked the Defense Production Act to help with EV batteries, and has authorized the release of oil from the US Strategic Petroleum Reserve, which will work to lower gas prices.

In early March, Tesla CEO Elon Musk called for an immediate increase in gas and oil production in the US.

Biden's plan will release over 180 million barrels of oil from the Strategic Petroleum Reserve. More specifically, it authorizes the release of 1 million barrels per day for six months.

The President also signed a Defense Production Act directive that will allow the US to put a high priority on the mining and production of key EV battery materials, and even offer subsidies to companies that are ramping up their efforts.

The Department of Defense determined in a recent study that the components needed for high-capacity batteries are critical to our country's national defense. The authorization will also help the government construct new US factories for battery material production.

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