Canada faces energy and EV battery supply chain challenges

Canada faces critical infrastructure challenges in its transition to a green economy, specifically regarding electricity supply and electric vehicle (EV) battery management.

Research from the Canadian Climate Institute suggests that insufficient clean power could jeopardize between $110 billion and $220 billion in potential capital investments, including mines, factories, and data centers. Natural Resources Canada estimates that approximately $1.4 trillion in electricity-system investment will be necessary by 2050 to meet rising demand. In Ontario, electricity consumption is projected to increase by roughly 65% by 2050, creating a significant need for new transmission, generation, and storage.

Simultaneously, there is a growing need for a domestic EV battery recycling strategy. While the Canadian government has invested heavily in mining and manufacturing, the end-of-life stage for batteries remains underdeveloped. Developing a circular economy for battery repurposing and recycling could allow Canada to capture significant economic value and better compete in the North American market as zero-emission vehicle sales are targeted to reach 75% by 2035.