You can't build millions of EVs annually without access to enough battery cells, and those cells aren't coming quickly enough due to a lack of mining and refining. Elon Musk has already made it clear that Tesla may get into the battery materials business, and the company already has some plans underway. Now it appears to be considering a project in Ontario, Canada.
According to recent reports, Tesla is looking for opportunities in Ontario related to the extraction and processing of minerals. In fact, the automaker reportedly already filed official paperwork with the Ontario government related to the potential project. Moreover, reports suggest Tesla is looking at the possibility of having an industrial facility in the area.
While news like this from filings may not necessarily become reality, Tesla had the following details to share in the filings per Teslarati:
“Work to identify opportunities for industrial facility, mineral extraction and processing project permitting reforms to increase the competitiveness of Ontario and its ability to attract capital through approvals timeframes that are competitive with other locations while working with government to identify incentives to further increase the attractiveness of Ontario."
For further substantiation about what Tesla may have up its sleeve, Electric Autonomy questioned Canada’s Ministry of Economic Development, Job Creation and Trade, Victor Fedeli. The government official clearly wasn't required to provide any official statement or further details, but there was a response issued through press secretary Vanessa De Matteis.
Economic Development head Victor Fedeli didn't specifically point out Tesla. However, he noted that Ontario is reducing the cost of doing business by some $8 billion annually, which has sparked massive investments in the area. Investments include $25 billion in the automotive and EV market alone over the past two and a half years. Thus, it could prove highly lucrative for Tesla to invest in Ontario and devise a business plan with the province.
This isn't the first we've heard Tesla may be looking to get into the battery business, and more specifically, mining operations in Canada. There have also been reports that the EV maker may consider an automotive factory in the country. However, it just recently decided to build its next North American EV factory in Mexico.
Tesla reportedly started lobbying the Ontario government related to manufacturing facilities as far back as August 2022. A month later, the automaker hired the province's former battery mineral expert for its newly established Critical Minerals & Supply Chain Policy Advisor position.
Ontario government officials have been engaged in ongoing meetings with Tesla ever since, so it will be interesting to learn more about what they may be planning. As we previously reported, some Canadian officials have visited Tesla's Fremont factory. Reports state there may have been non-disclosure agreements involved in some cases.
