Investments Increase in North American Battery Materials Mining Projects

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By Anjali Joshi

The Inflation Reduction Act’s (IRA) support for the growth of the EV battery industry in the United States has led to a stream of new battery investments in the country. In addition to Tier 1 suppliers like LGES and Panasonic, new market players like Kontrolmatik have increased their planned battery cell production capacity in the United States.

However, the country needs to invest in mining activities as well to create a stable and secure battery supply chain. Additionally, the IRA requires EV to have a minimum level of domestic content to qualify for the tax credits under the IRA. These two factors are driving a wave of investment in mineral extraction and processing to support planned battery manufacturing plants in the country.

As the latest in these announcements Piedmont Lithium recently announced its plans to set up a new lithium hydroxide plant, with a planned annual production capacity of 30,000 metric tons, in McMinn County, Tennessee.

Canada’s more attractive regulatory environment has also been attracting suppliers to establish their presence in North America. Mine permitting times are shorter in Canada as compared with the United States. Furthermore, the Canadian government has proposed C$3.8 billion funding to support the country’s mining sector, including critical mineral projects.

As such, the country has witnessed a tremendous growth in terms of investments by different battery market supplies, from the US$5 billion Stellantis and LGES investment in a Windsor battery, to the US$500 million investment by General Motors and POSCO Chemical on battery material production factory in Bécancour, Quebec.

According to a report by Clean Energy Canada, between 2020 and June 2022 the country attracted over US$13.8 billion in investments along the EV battery supply chain, including:

  • US$1 billion for EV battery material extraction and materials processing
  • US$5.2 billion for EV battery cell and module manufacturing
  • US$6.6 billion for EV assembly
  • US$1 billion for EV battery components and recycling

The influx of investments continues with some additional major battery announcements, including Umicore’s US$1.5 billion plan to build a cathode active battery materials facility in Kingston, Ontario, and recent deals of the Canadian government with Volkswagen and Mercedes-Benz to secure Canadian EV battery raw materials and battery manufacturing in the country.

The three projects – Critical Elements Lithium’s Rose project, Sayona Mining’s Authier project, and Sayona and Piedmont Lithium’s La Corne Mine, all in Quebec – are expected to add over 50,000 tonnes of lithium carbonate equivalent production. Nemaska Lithium’s Whabouchi mine in Quebec is another project with 52,500 tonnes of expected annual output from 2025.

Source: CEA Research