Quebec said no to the GNL-Quebec megaproject. He also closed the door to the development of hydrocarbons.
Posted at 5:00 a.m.
Some Quebecers were able to conclude that the energy transition would be to the detriment of the economy. To these, the Legault government is preparing a response. This replica is the sector of the electric battery.
Seeing Quebec trying to find its place in this new industrial niche, despite the risks involved, is exciting.
In an editorial interview on Monday, the Minister of the Economy, Pierre Fitzgibbon, set out his vision on this subject. Flanked by Guy LeBlanc and Hubert Bolduc, respectively from Investissement Québec and Investissement Québec International, Mr. Fitzgibbon answered our questions at length.
In this vision, Quebec draws lithium, graphite, nickel and cobalt from its subsoil. It turns them into cathodes and anodes, the positive and negative poles that make batteries work.
With known reserves, Quebec could manufacture more than 4 million batteries per year. Considering that a battery sells for around $9,000 and the anode and cathode account for half the cost, we’re talking about revenue of around $18 billion. Enough to fill part of the wealth gap between Quebec and Ontario, a key objective of the CAQ.
In the best of all worlds, complete batteries are assembled here. And they are placed under the hood of electric buses from Lion Electric and personal watercraft (also electric!) from BRP.
Quebec also wants to position itself in the future electric battery recycling industry, which would make it possible to manufacture new batteries without having to operate mines.
No doubt: it’s a beautiful dream. But with ambition also comes risk. There are obviously the billions of public money (the exact sums are still unknown) pumped into the adventure.
We have in mind the Magnola factory, supported by our taxes and inaugurated with great fanfare in 2000, which quickly found itself in the water when China caused magnesium prices to fall.
In the case of the electric battery industry, the risks are not only financial. The development of graphite mines, in particular, often takes place in regions known for their resorts (Laurentides, Lanaudière, Outaouais). This raises environmental and social acceptability issues that should not be overlooked.
In the midst of a labor shortage, it will also be necessary to find qualified workers to operate this new sector.
But it would be wrong to criticize our elected officials for thinking big and wanting to create wealth. Especially since we are talking here about a plan that would get us out of a trend long denounced in Quebec: that of selling our natural resources without transforming them.
For the moment, it is a bit as if Minister Fitzgibbon and his acolytes had placed the parts of a huge set of gears on a table. It remains to make them work individually and, above all, together.
The big current challenge? “It’s the execution,” says the minister.
On the mining side, players such as Nemaska Lithium, Sayona Mining or Nouveau Monde Graphite are drawing or will soon draw resources from the ground.
A crucial part of the chain will be the Nemaska Lithium plant in Bécancour, which is supposed to transform lithium into hydroxide that can be used by battery manufacturers. For now, it’s still a dream.
This month, two essential pieces were added when the GM-POSCO and BASF groups both announced cathode factories in Bécancour.
We want these multinationals to source Quebec minerals, but nothing prevents them from buying their raw materials in China or elsewhere, which would make their presence here much less interesting.
A battery assembly plant? It would be an interesting complement and we understand that Investissement Québec is leading discussions on this subject. But so far, Ontario has managed to attract one thanks to its auto industry.
Minister Fitzgibbon doesn’t seem too worried, pointing out that Quebec can’t have it all and that manufacturing cathodes and anodes accounts for the bulk of the cost of a battery. Ontario, indeed, can be seen as a partner rather than a competitor.
In any case, we must salute the Legault government’s desire to work to position Quebec in an industry that is on the right side of the energy shift. And if we fear the risks, let’s consider that there are also risks in standing still while the world changes.