OTTAWA — Canada and Japan signed a brand new battery supply-chain settlement in Ottawa Thursday, as Canada seeks to develop its place within the battery trade and Japan seeks to safe entry to profitable American EV subsidies for its automakers.
Industry Minister Francois-Philippe Champagne was coy about what sort of Canadian subsidies may comply with to lure Japanese battery makers into Canada, although he and Natural Resources Minister Jonathan Wilkinson each talked about discussions underway with Toyota and Honda.
The CEO of Prime Planet Energy and Solutions, the three-year previous automotive battery-maker created by Toyota and Panasonic, was additionally in Ottawa Thursday to signal a separate settlement to work with Vancouver-based FPX Nickel Corp. Panasonic Energy additionally signed a co-operation pact with Quebec’s Nouveau Monde Graphite.
Those offers had been separate from the government-to-government “memorandum of co-operation,” which Wilkinson mentioned is a typical a part of negotiations and enterprise dealings with Japan and its corporations, laying out a framework for corporations from the 2 international locations to then make their very own offers.
He referred to as it a sign “that there is interest on the part of the Japanese in actually looking at manufacturing of batteries in Canada and that Canada is interested in being a supplier to ensure that Japan has access to the kinds of materials that it needs that it does not have domestically,” Wilkinson mentioned.
WHAT JAPAN BRINGS
Japan brings expertise in mineral processing to the desk, in addition to battery and auto manufacturing corporations, whereas Canada brings entry to crucial minerals and an increasing battery manufacturing provide chain.
Japan’s trade minister Yasutoshi Nishimura, who travelled to Ottawa to signal the settlement, mentioned it’s crucial for the 2 international locations to hunt out like-minded allies in a world with growing geopolitical pressure.
“Looking back over the past four years, international affairs have become increasingly unstable, with the spread of infectious diseases, Russian aggression against Ukraine and attempts by some nations to weaponize economic independence in the form of coercion for diplomatic and security purposes,” he mentioned.
“In this context, the need for co-operation between Japan and Canada has increased greatly. We share common values and are good partners in the Indo-Pacific region.”
COUNTERING CHINA
Both Canada and Japan wish to counter China’s financial and political dominance within the Indo-Pacific area, in addition to within the world battery trade.
Canada launched a brand new Indo-Pacific technique final 12 months, and has been making an attempt to do what it calls “friendshoring” — or co-operating with allies on crucial minerals and different expertise provide chains to stop international locations like Russia and China from utilizing these provides to affect world affairs.
For Canada, the take care of Japan is well-timed, permitting it to indicate rising ties with a key Indo-Pacific ally at the same time as its relationship with India barrels in direction of all-time low.
On Monday, Prime Minister Justin Trudeau mentioned Canada’s intelligence providers have credible proof that Indian authorities brokers had been related to the taking pictures demise of a Vancouver Sikh chief in June.
Ahead of that bombshell assertion, Canada cancelled a deliberate commerce mission to India this fall and paused ongoing commerce deal talks.
TRADE MISSION SOON
Trade Minister Mary Ng is predicted to steer a commerce mission to Japan this fall, saying Thursday not less than 100 corporations are becoming a member of her for that journey.
Canada has laid out tens of billions of {dollars} lately to ascertain itself as a worldwide battery chief, with investments in additional than a dozen battery provide chain and manufacturing corporations.
That contains as much as $13 billion in manufacturing subsidies for Volkswagen to construct a battery plant in St. Thomas, Ont., and $15 billion in manufacturing subsidies for a Stellantis battery plant in Windsor, Ont.
Last 12 months, Champagne was in Japan thrice making the pitch for Canada’s battery materials capability to Japanese automakers and electronics giants.
Canada additionally may assist Japanese automakers produce electrical autos that qualify for an enormous shopper tax rebate within the United States. The rebate, which lowers the price of EVs to patrons by a number of thousand {dollars}, is proscribed to autos manufactured in North America with principally North American-made batteries.
Source: canada.autonews.com