Manitoba wants to be a link in the EV supply chain

Manitoba is throwing its hat in the ring as the next hub for critical minerals mining and processing to support the electric-vehicle supply chain.

The province’s “long overdue” strategy, launched July 25, is a signal to the industry that it is serious about leveraging its natural resources, said Jeff Wharton, minister of economic development, investment and trade.

“The shingle’s out. We’re open for business,” he told Automotive News Canada.

The strategy will help mining in the province keep pace with increasing demand while extending Manitoba’s reach into the value-added processing of minerals and end-product manufacturing.

“For too many years, we’ve been sending our product, our critical minerals, offshore; having it manufactured; and then buying it back,” Wharton said.

Manitoba’s mix of resources, an electricity grid almost entirely powered by renewables, and a skilled workforce positions the province favourably, he said.

Wharton, with Manitoba Premier Heather Stefanson, launched the strategy at an event near Winnipeg.

Stefanson described the province — which boasts 29 of the 31 minerals the Canadian government recognizes as essential — as the “Costco of critical minerals.”

NO STRANGER TO MINING

With lithium, nickel and other metals available in Manitoba that are integral to EVs, Wharton said, the government aims to see minerals manufactured into end products before leaving the province.

“We’re really excited about the conversations we’ve had with companies throughout the world that are looking to Manitoba in exactly that space with respect to manufacturing of the batteries here,” he said.

But the province has significant ground to make up to catch Canadian battery-supply-chain leaders Quebec and Ontario, where companies have announced tens of billions in battery-cell and material investments over the past two-and-half years.

Manitoba has a mine producing lithium, but a 2019 takeover put it under the control of China-based Sinomine Resource Group Co., which ships the lithium offshore for processing.

About 20 other companies are carrying out exploration or development work on lithium-rich deposits in other areas of the province.

Winnipeg-based Snow Lake Lithium Ltd., for instance, is developing the Thompson Brothers hard-rock lithium project in central Manitoba. Regulatory and financial barriers remain, but the company aims to start site development next year.

Snow Lake also struck a nonbinding partnership with battery-cell maker LG Energy Solution in September 2022 that could bring a lithium processing plant to the Winnipeg area.

Grid Metals Corp., New Age Metals Inc. and Foremost Lithium Resource & Technology Ltd. are among the other developers advancing lithium projects in Manitoba.

PROMPT PERMITS

To help the companies get shovels in the ground, the province’s critical-minerals strategy includes a commitment to accelerating the permitting process. Part of a recent $5 million investment will go toward increasing by 50 per cent the number of staff working on permitting files, while other steps are upcoming, the strategy says.

A shortage of capital is another challenge for prospective companies, Wharton said, but, “The government will be ... sure to assist in those areas where we can, where it benefits all Manitobans.”

While the province has several supports on its books for mining companies, including progressive tax rates and deferred taxation for new mines, the critical-minerals strategy offers few new initiatives. It does commit to working with Ottawa to ensure that funds from the federal strategy are funneled toward Manitoba.