In the News: ‘It is not only about economics’: Biden’s friendly visit doesn’t change the protectionist status quo
March 28, 2023 ·
Contributed by: Geoff Russ, The Hub
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Canada itself has engaged in its own form of incentivizing green projects, with the federal and Ontario provincial governments spending a yet-undisclosed amount of money this year to ensure Volkswagen builds its electric vehicle battery plant in St. Thomas, Ontario. Estimates of the total cost range as high as $10 billion CAD, and the project has been received with a mixture of praise and skepticism surrounding the cost and benefits of the plant.
Candice Chow, a professor at McMaster University’s DeGroote School of Business, says the electric vehicle industry would have been an important topic during Biden’s visit.
“As the U.S. is seeking to bring jobs back, Canada needs to ensure with its vast natural resources, we do not become a country of commodity export, but secure our ability to take a leadership position in innovation and in green technology,” says Chow.
With the electric vehicle industry growing and requiring new spaces and capabilities, Chow says it’s natural to reshore the industry within Canada.
“Canada has the competitive advantage in mining for cobalt and has lithium deposits, completing a crucial aspect of (the) EV auto supply chain,” says Chow. “Our weather creates opportunities for us to build and develop better battery range. We have a healthy auto sector cluster with part suppliers, especially in Ontario, and multiple multinational enterprise auto brands already have facilities in various parts of the province (and) country.”
Chow says there are many reasons why certain industries are reshoring, including economic and political ones.
