The Legault government has just been beaten by Ontario, which will have its $5 billion battery mega-factory from the giants LG and Stellantis, according to the opposition parties in Quebec.
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“It is symbolic of the failure of the ambition of François Legault and Pierre Fitzgibbon to make Canada work to the advantage of Quebec,” denounced the leader of the Parti Québécois (PQ), Paul St-Pierre Plamondon.
“It is our taxes that will prevent Quebec from having its battery pole. It reminds me of Davie,” he added, adding that the Ontario investment of $5 billion and 2,500 jobs created had nothing to do with the $500 million and 200 new jobs from General Motors (GM ) and Posco in Bécancour announced recently.
Quebec “in shorts”
For the Liberal Marc Tanguay, official opposition spokesman for the economy, the Legault government is “in short pants”.
“Coming from a premier who likes to compare himself to Ontario. Today, Doug Ford and the Ontarians scored a big goal.
On Wednesday, Ottawa announced to much fanfare that Windsor, Ont., is where Korean giant LG and Stellantis will build the country’s first $5 billion battery ‘mega-factory’, creating 2,500 jobs. paying.
“This is the biggest auto industry investment in the history of the province and the country as well,” said Ontario Premier Doug Ford. It is not yet known how much public funds will be injected by the federal government.
False competition
However, for the Minister of Industry, François-Philippe Champagne, yesterday’s announcement is good news for the Bécancour battery industry.
“The competition is not between Quebec and Ontario. It’s between Canada and the United States or Europe,” he said in an interview. Newspaper.
“We were missing an important element, which was the battery factory and today we have it, so on the contrary I see this as very good news”, he insisted.
Same story for Daniel Breton, CEO of Electric Mobility Canada (MEC), who stressed that the arrival of LG would help the Quebec industry.
“It’s excellent news for Quebec and Canada to see that Quebec and Ontario are doing well,” he said.
Fitz not disappointed
Wednesday, when The newspaper asked the office of the Minister of the Economy, Pierre Fitzgibbon, if he was disappointed not to have had the plant in Quebec, he answered no and that he knew that the project was coming.
“There will be several cell factories to be announced in the future. The LG plant will be used to create cells for batteries while the BASF and GM Posco projects will produce active materials for cathodes while Nouveau Monde Graphite will produce active materials for anodes,” said its director of communications. , Mathieu St-Amant.
“The latter materials represent more than 60% of the cost of a battery and have great added value. We are also in discussions with various cells that wish to establish themselves in Quebec. We are proud to have integrated ourselves into the car supply chain in Canada, a first for 20 years,” he concluded.
The largest battery manufacturer in the world, CATL is looking for a location to build a factory in North America.
The Quebec battery industry faces major obstacles
Labor shortage, protectionism, competition… a Desjardins Group economist believes that the Legault government will have to “keep breathing” to advance its battery industry.
While the financial cooperative notes that Quebec has positioned itself to welcome electric battery factories, we note that it will have to work hard to stay in the race.
“However, nothing is certain: in addition to the scarcity of potential workers, it must be recognized that Uncle Sam has not really let his guard down when it comes to protectionism,” observes Joëlle Noreau, senior economist at Desjardins Group. in an analysis published yesterday.
“Competitors have colossal financial means and have been running for longer,” she adds.
Adequate funding, recruitment of skilled labor, worker training and partnerships with prime contractors are all challenges that battery production plants will have to overcome.
We go from afar
According to the economist, “the country is starting from a long way in comparison with its competitors”, but it is necessary to underline the declared desire to go beyond the extraction of lithium.
“This is the first time in the history of Quebec where we are able to take the ore and go so far in the chain”, recently underlined in an interview with the Newspaper the Minister of Economy, Pierre Fitzgibbon, after the announcement of the arrival of the German giant BASF.
From metal mining to battery recycling, Quebec has many assets, points out Desjardins.
Even if Canada and Quebec are not major players in the exploitation of lithium, it is possible to do well.
“Despite the fact that Quebec is not a dominant player in terms of lithium reserves, it has already positioned itself as a land of welcome for electric battery factories and their recycling,” concludes Joëlle Noreau.
◆ battery factory of LG and Stellantis in Ontario
- City: Windsor, Ontario
- Cost : $5 billion
- Jobs: 2500
◆ Cathode Materials Factory GM Posco in Quebec
- City: Becancour
- Cost : $500 million
- Jobs: 200
Sources: Ministry of Innovation, Science and Economic Development Canada and Ministry of Economy and Innovation of Quebec