Fortune Minerals Ltd T.FT

What Canada can do to compete for low-carbon investment

[Allman]

New report out by CLEAN PROSPERITY which provides recommendations as to where Canada should invest in the green economy - some favourable recommendations for mining and mid stream processing.

There is a risk that Canada could miss out on the huge opportunities available in the low-carbon transition because our investment environment is less attractive than that in the United States. In particular, the US Inflation Reduction Act (IRA) has opened up a wide gap between the revenue available from public-policy sources for new low-carbon technology deployment in Canada versus the US. …
Canada lacks the fiscal firepower to compete dollar for dollar with the United States on PTCs [production tax credits]. But even if it could, it might not make sense for Canada to simply copy US industrial policy. To create a “level playing field”, Canada would be better off developing its own industrial strategy that matches incentives in high-priority areas, concedes a disadvantage in others, and seeks to open up bankable gaps in areas not covered by the IRA. This more strategic approach would begin by identifying high-priority opportunity areas: industries where Canada can compete globally and which could produce significant economic benefits in the form of good jobs and manufacturing value added. For these high potential industries, the data in this working paper can be used to highlight if and where additional economic support — beyond the contracts for difference recommended above — are merited. …

Battery active materials
Canada’s strategy in the electric vehicle (EV) supply chain is to leverage anchor investments in EV assembly and battery manufacturing into a full mines-to-mobility value chain. Canada may need to match the IRA’s PTC for cells and modules in order to ensure that batteries are made here in Canada. But Canada’s strategy should include incentives for upstream mining and midstream chemical processing.
Matching or beating the IRA’s PTC for battery components would support the midstream while providing demand-pull on Canadian minerals. The midstream is also crucial to building competitive and innovative battery-metals supply chains. A strong chemical processing sector will help Canada keep costs low and rapidly adapt our supply chains as battery chemistries change over a long transition.

https://cleanprosperity.ca/new-data-shows-what-canada-can-do-to-compete-for-low-carbon-investment/