Korean battery manufacturers are pulling off a strategic relocation worthy of a geopolitical chess match, shifting investments toward Canada while the United States remains tangled in tariff disputes and political theatrics. When your neighbor can’t decide whether electric vehicles are the future or a communist plot, you find a more stable alternative.
LG Energy Solution recently converted its NextStar Energy facility in Canada, the joint venture with Stellantis, into a standalone operation. The immediate focus targets North America’s energy storage system (ESS) market, though electric vehicle battery production remains firmly on the agenda.
Meanwhile, Solus Advanced Materials is constructing North America’s only copper foil production plant for EV batteries in Granby, Quebec. Construction began in 2022, with completion scheduled for the fourth quarter of this year and mass production launching next year. Initial capacity stands at 25,000 tons, expandable to 63,000 tons.
EcoPro BM and SK On have largely completed construction of a cathode material production facility in Quebec as well. Operations paused last year when North America’s EV market hit a speed bump, but equipment installation will resume once market conditions stabilize.
Canada’s appeal extends beyond mere geography. The government recently unveiled an “Electric Vehicle Promotion Policy” with restructured medium and long-term goals. Instead of abandoning the existing 2035 target for 100% EV conversion, officials introduced new benchmarks. 75% of new vehicles as EVs by 2035 and 90% by 2040.
Electric vehicle subsidies return on the 16th of this month. Individuals or companies can receive up to CAD 5,000 ($5,370) for battery or fuel cell EVs, and CAD 2,500 ($2,680) for plug-in hybrids. An additional CAD 1.5 billion ($1.61 billion) will expand charging infrastructure.
As political uncertainty grows south of the border, Canada emerges as a central hub for North America’s EV industry. Korean companies with early investments stand to benefit most. A battery industry official noted that Canada combines policy, infrastructure investment, and foreign automaker participation into a coherent strategy, adding that as US political instability increases, Canada’s role as an alternative hub will expand.
