MRO Magazine

MAC welcomes 2021 budget for BEV supply chain

April 26, 2021 | By Maryam Farag

The Mining Association of Canada (MAC) “welcomes several expanded and refined measures proposed in budget 2021 to help position Canada for success on the “Mines to Mobility” pathway.”

Budget 2021’s proposed expansion of the Strategic Innovation Fund – Net Zero Accelerator to $8 billion, designed to support the establishment of a domestic battery electric vehicle (BEV) supply chain.

“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 Pierre Gratton, President and CEO, MAC. “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.”

According to MAC, supports targeting rare earth elements (REEs), including the establishment of a Critical Minerals Centre of Excellence that will focus on coordinating federal policy and programs on critical minerals, and $36.8 million over three years for federal research and development to advance critical battery mineral processing and refining expertise, “are positive but modest.”


“While the supports included in Budget 2021 signal strong support for establishing a battery supply chain, including the minerals and metals that support battery manufacturing, more must be done to specifically advance REE development in Canada if we are to be an equal and credible partner with the United States in shoring up a domestic North American supply chain for these materials,” said Gratton.

Other aspects of the budget that impact Canada’s mining sector include:

  • $319 million over seven years, with $1.5 million in remaining amortization, 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 to support work-integrated learning opportunities for post-secondary students.
  • $960 million over three years to Employment and Social Development Canada for a new Sectoral Workforce Solutions Program.
  • $40.4 million over three years to support feasibility and planning of hydroelectricity and grid interconnection projects in the North. This funding could advance projects, such as the Atlin Hydro Expansion project in Yukon and the Kivalliq Hydro-Fibre Link project in Nunavut.


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