Canada is set to announce new regulations requiring all new cars to be zero-emission vehicles by 2035, according to Reuters which cited a senior government source.
The initiative, known as the Electric Vehicle Availability Standard, aims to bolster the availability of electric vehicles (EVs) in the Canadian market and reduce wait times for consumers. British Columbia and Quebec already have similar regulations in place.
Under the Electric Vehicle Availability Standard, zero-emission vehicles, including battery electric, plug-in, and hydrogen models, are mandated to constitute 20% of new car sales by 2026, 60% by 2030, and 100% by 2035. The source, speaking on condition of anonymity, shared these details ahead of the official announcement expected later this week.
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This move aligns with global efforts to promote electrification, with the International Energy Agency projecting that electric vehicle sales will comprise 40%-45% of the market by the end of the decade.
LFP in North America
But there’s a lot more work that needs to be done. First Phosphate Corp (CSE: PHOS) CEO John Passalacqua noted in a post on LinkedIn that there’s “no chance of getting there by 2035 Government of Canada without a realistic critical minerals strategy, accelerated at home mine development and an understanding of LFP battery and the power of Quebec igneous phosphate deposits to get you there.”
“Time to take heed of the comments by Nobel laureate Stan Whittingham on LFP batteries and North America,” he added. Whittingham recently spoke at Benchmark Week 2023 about how Canada and the US have “everything it needs” to build cheaper lithium iron phosphate (LFP) cells in North America, and that the two countries just need to work together.
“I’ve been trying to convince Washington, with some success, to talk about North America and stop talking about the US. Because we have a lot of clean energy in Canada, we have nickel, and graphite in Canada, and they’re our friends. So let’s work more closely with them,” he said.
A recent news release from First Phosphate emphasized that “Quebec igneous anorthosite phosphate rock is an untapped source of high purity phosphate which can potentially be mined and transformed into large quantities of purified phosphoric acid (PPA) to service North America’s need for the production of LFP cathode active material to meet electrification targets.”
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FULL DISCLOSURE: First Phosphate is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Phosphate. The author has been compensated to cover First Phosphate on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
