Electric And Concept Cars
Japan will establish a supply chain in Canada that entails the mining and processing of essential minerals as well as the creation of storage batteries required for EVs.
As the two countries collaborate to increase supply capacity, the Canadian government will offer subsidies and other forms of assistance.
The initiative will increase EV sales for Japanese businesses in North America while also boosting economic security.
The supply chain for storage batteries will be the subject of a memorandum of understanding that the trade minister of Japan, Yasutoshi Nishimura, will sign with Jonathan Wilkinson, Canada's minister of energy and natural resources, and others when he travels there next Thursday.
The Japan Organization for Metals and Energy Security and others are anticipated to collaborate on nickel and lithium extraction in Canada. Although Canada has huge reserves of key minerals, it faces production capacity difficulties in areas such as technology and human resources.
According to the US Geological Survey, Canada has one of the world's greatest lithium reserves, around half that of China, although its production output remains around 2% of China's. Cooperation with Japan will result in higher output.
Production facilities for storage batteries incorporating vital minerals mined in Canada are in the works, according to Japanese manufacturers of materials and batteries.
The Canadian government is looking to help Japanese companies expand locally through subsidies and other means. There are expectations for industrial development and the creation of new jobs.