Canada: Ontario is turning to electricity as an economic driver

Canada: Ontario is turning to electricity as an economic driver

The province of Ontario is not only the economic heart of Canada, but also a leader in the transport transition towards green technology and electromobility. The combination of mineral wealth needed for batteries, along with new investment in manufacturing, promises to make Ontario a leader in electric mobility. The series of foreign investments that started this year around the Stellantis project confirms this ambition. Responsibilities for European companies include supply chains and involvement in your operations, as well as collaboration in research, development and innovation.

Ontario has all the prerequisites to be a world leader in electricity, and the local government is in a clear hurry. The region, which is rich in important mineral raw materials and has a large production of cars, fully launched in 2019. Ontarios Driving Success, which aims to support the development of the fifth generation of vehicles through a competitive environment, support for innovation and talent. Ontario is the largest automotive center in North America, in the famous automotive corridor, which stretches from the city of Windsor to Ottawa, there are 12 major car manufacturers, more than 700 dealers and several research centers, the first support of the province’s innovation . . Ontario has taken an ambitious approach to electricity assistance, trying to remove barriers to trade, providing investors with substantial support and financial support. The InvestOntario Fund supports automotive transformation projects with a budget of $400 million, the Net Zero Accelerator Fund has $8 billion for certain technologies, including electromobility and battery production, and Ontario’s Vehicle Innovation Network has $56 million available for the development of electric mobility. that electromobility is Ontario’s flagship, but also Canada’s darkest, is demonstrated by Canada’s first electric car project. Arrow.

The Ontario government’s vision for the electrification of the automotive industry (InvestOntario)

However, Ontario is interested in attracting a foreign company and an electromobility investment project has been prepared, and it can be said that it is still possible. Already during the 1st phase of the government’s strategic plan, investments in electricity worth 4 billion dollars were covered: Ford and the production of batteries for electric cars in Oakville and 5 new types of electric cars, Stellantis and the production of various vehicles electric in Windsor, GM announced production of BrightDrop electric vehicles in Canada, which will begin in the fifth year. Toyota and Honda have both announced investments in the Ontario automaker. The type of guilt is mainly due to investment in battery production, which was also confirmed by the new Stellantis project (see below), and attention to Ontario in this matter is starting to tighten in Europe as well. Last year, he negotiated with the Ontario government to build Volkswagen’s first non-European factory. At the beginning of December, the head of the following car company confirmed that it had begun to select suitable locations for the construction of the water pipeline.

It can be expected that Europe will continue to increase its interest in electromobility cooperation with Canada and Europe companies as well as investment, they will strive for VT involved in supply chains, which is also facilitated by the Comprehensive Economic and Trade Agreement between Canada and the EU, CETA. However, the fact that the United States, as Canada’s main trading partner, represents significant competition cannot be ignored. Canada and Mexico navc sI have relations with the United States in the dispute procedure in the USMCA regional agreement. Oekvan’s decision, despite the protectionist efforts of the United States, will confirm the efforts to do business in the automotive sector in North America (removing the parameters of the regional laws of origin) and send cooperation even in regionincluding automotive components.

Mineral wealth as an indicator for investors and the use of durable metals

What investors are looking for in Canada, first for the production of batteries and even electric vehicles, is the same as raw materials. Part of the deal with Volkswagen signed in August was the construction of sustainable supply lines, including Canadian minerals. The discovery of lithium, cobalt and nickel will be supplemented by geological studies of other deposits, which cover almost the entire range of important mineral resources. The largest supply of these important mineral resources is expected from the Ring of Fire area in the north of the region, where there are many deposits of chromium, cobalt, nickel, copper and platinum, and that in the highest possible quality. Tba has not yet started in the area and is the subject of discussion with local residents, the decision to turn it on has the potential to influence the state’s expectations, first for batteries and for technological development. Not long ago, the government of another Canadian neighbor was interested in the potential of the area, and is considering a financial feasibility study.

Discovery of key raw material deposits in the province according to Ontario’s Key Raw Materials Strategy

The Ontario government has developed a strategy for the production of important mineral resources until 2027, which should begin the second important phase for technological development and is already connected to its long-awaited plan for the transformation of the automotive industry. electromobility. By 2030, Driving Efficiency wants to ensure and support the battery supply chain ecosystem. For European companies, in line with the automotive sector, there is a chance to collaborate first in this sector as well. Canada foolishly concluded a strategic partnership with the EU in this area, which should lead to transatlantic routes and more investment. Collaboration was also the theme of the summer session CETA committee changes, who confirmed the need to strengthen partnerships and integrated value chains. Union and Europe against a clear geographical background stands in contrast, for example, to the Canadian government’s demands for the removal of companies in Canada and increase controls on foreign investment. cooperation in electromobility with the EU is so difficult, and as a strategic partner, Europe can join forces with Canada in an important project.

Lkadlo technology and talent

At the same time, the Canadian region can develop investments that are accompanied by innovative projects. The first investment announcement in the electromobility project came this year from the company Stellantis, which announced a joint investment with LG Energy Solution worth 5 billion dollars in the production of batteries for electric vehicles. The plant, which will be the largest investment by an owner from the EU to date, should be in Windsor from 2024. Stellantis therefore follows the recent investment worth 3.6 billion dollars in electric vehicles and hybrid vehicles, which will create two facilities. in Windsor for electric vehicle research and development. During the December negotiations with the University of Windsor, the General Counsel and agent of CzechInvest had the opportunity to fulfill these wishes.

In the fifth year, the University of Windsor should start the FuturECar project, which, together with training talent in electromobility for car companies, will focus on the development of research areas such as connected and autonomous vehicles, suitable equipment for car batteries electricity, energy integration and the general issue of propulsion. This project should be financed not only from government sources (CAD 140 million), but also from university and industrial partners, which currently involve about 85. FuturECar is also open to international cooperation, and now experts from the USA, Japan and other countries are concerned with international access and much more.

To build an ecosystem of electronic innovations and connect small and medium enterprises with research centers, Ontario initiated the creation of st. OPINIONS (Ontario Vehicle Innovation Network), functions only as a hub for information and events. On the project site, you can familiarize yourself with the entire ecosystem of the state in this area

OVIN, for example, supports member businesses in the business of new technologies, the development of collaborative partnerships and the strengthening of talent in Ontario. Building talent is the crux of the Success Driven strategy. The province is in a favorable position because of the highly diverse workforce (more than 63,000 students graduate from technical fields in Ontario each year) and 30% of them are invested in the workforce, not in competitors. regions. Together with OVIN, he developed a strategy to send talent to the region. Consider a curriculum relevant to current needs, not only at the level of higher education, but also remote technical degrees, active support to be in businesses involved during studies, re-localization and improvement of skills or active development of the region towards talents foreign

Among other research centers, the Center for Automotive Excellence at the University of Ontario Institute of Technology stands, where a test car was driven in weather tunnels (unfortunately, the Czech Research and Experimental Air Force was involved in the construction them), Canmet Equipment. the laboratory was transformed into materials research, and the Waterloo Center for Intelligent Antennas and Radio Systems has been transformed, among other things, into autonomous vehicle research. For Czech researchers and company innovators, there is therefore an opportunity to collaborate with Ontario partners who are engaged in electricity. It cannot be ignored that the region is also considering the related topics of free mobility and the transformation of production towards Industry 4.0, which can also be used there. First of all, Ontario’s efforts to develop the industry promise that the automotive industry’s involvement in the heart of Canada will continue to grow.

Eva Libs Bartoov, R General Counsel in Toronto

Karolna Konicarov, CzechInvest