Tesla announces lobbying efforts to establish an advanced manufacturing unit in Canada

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Tesla is lobbying the Ontario government to establish an “advanced manufacturing facility” in Canada, according to a filing by the electric vehicle maker with the provincial integrity officer’s office.

The company’s Canadian unit is working with the government to “identify opportunities for industrial facility permitting reform,” according to the amended July 18 filing.

Both Tesla and the Office of the Ontario Secretary of Economic Development, Job Creation and Trade did not immediately respond to requests for comment.

Canadian Industry Minister Francois-Philippe Champagne said in May there were “very active discussions with a number of stakeholders” to build an electric vehicle supply chain in Canada.

Tesla last week ramped up production with Chief Executive Elon Musk, speaking half-jokingly to shareholders who yelled “Canada” — “We have a lot of Canadas, I’m half Canadian, maybe I should.”

He said the company “might be able” to announce a new factory later this year, and there could eventually be 10-12 gigafactories. Tesla manufactures vehicles in two factories in the US and one each in Germany and China.

US EV makers are also looking to source materials and build cars closer to home to diversify supply chains and reduce their reliance on China, the world’s largest supplier of EV batteries.

Such efforts could be boosted by a $430 billion (approx.

After 2023, vehicles with batteries containing Chinese parts could not receive credit, while critical minerals are also subject to procurement restrictions.

© Thomson Reuters 2022


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