MAC welcomes EV support in federal budget

The Mining Association of Canada welcomes support for the domestic battery electric vehicle (BEV) supply chain as outlined in the federal government’s Budget 2021. The new proposals will help position Canada on what MAC calls the “Mines to Mobility” pathway.

“To establish an end-to-end BEV supply chain in Canada, we need to expand the production and manufacturing of critical minerals in Canada,” said president and CEO Pierre Gratton, “We need battery grade nickel, cobalt, lithium and graphite and we are pleased to see programs and tax measures that we believe can support filling or expanding domestic production of these materials.”

Changes have been proposed to expand Canada’s Strategic Innovation Fund-Net Zero Accelerator to $8 billion.

Supports have been made that target rare earth elements (REEs). A Critical Minerals Centre of Excellence will be established to co-ordinate federal programs. A commitment of $36.8 million over three years has been made for federal research and development, although modest, is welcome.

MAC also noted other aspects of the budget that will have a positive impact on the Canadian mining sector:

•  $319 million over seven years to Natural Resources Canada to support research, development, and demonstrations that would improve the commercial viability of carbon capture, utilization, and storage technologies, and a commitment to consult on establishing a tax credit to support uptake.
•  $239.8 million in the Student Work Placement Program in 2021-22 to support work-integrated learning opportunities for post-secondary students.
•  $960 million over three years, beginning in 2021-22, to Employment and Social Development Canada for a new Sectoral Workforce Solutions Program.
•  $40.4 million over three years, starting in 2021-22, to support feasibility and planning of hydroelectricity and grid interconnection projects in the North, particularly if projects will provide clean power to communities and help reduce emissions from mining.
•  Several measures to accelerate the Canadian Hydrogen Strategy.

Download or view Budget 2021 at www.Budget.gc.ca/2021/home-accueil-en.html .