With an insatiable demand for lithium around the world, new tax incentives unveiled in the 2023 federal budget could have big implications for Manitoba’s mining industry.
Lithium – the rare earth material that is a critical component in electric car batteries – can be found here in Manitoba.
“The projections for electric vehicle demand are through the roof, and there’s not enough lithium supply on the planet right now to supply it,” Dave Peck, with Grid Metals Corporation, told CTV News.
He says Grid Metals wants to be a part of it. The exploration and development company plans to extract lithium from an area north of Lac du Bonnet.
It’s working with Sagkeeng First Nation to develop the new mines which it estimates are about two years away from being able to extract the material.
“We can build a battery plant here. We have renewable power, we have a great labour force, and we’ve got everything people would want,” Peck said.
At the moment, there isn’t a place to process the lithium in Manitoba.
“There’s a window right now in terms of these critical minerals. Because they’re not going to wait, other provinces and other countries aren’t going to wait for Manitoba to get its act together,” said Chuck Davidson, the president and CEO of the Manitoba Chambers of Commerce. “Now is the time for us to take advantage of this.”
That may be about to happen.
Tuesday’s federal budget contains a 30 per cent clean-manufacturing tech tax credit equal to the cost of investments in new machinery and equipment used to extract, process or recycle critical minerals essential for clean technology supply chains.
“Canada has to seize this historic opportunity or else we’ll get left behind as the rest of the world’s democracies build the clean economy of the 21st century,” said Canada’s Finance Minister Chrystia Freeland.
The Canadian Mining Association says this budget should help to intensify the mining already going on in Manitoba.
“It will breathe even more life into parts of Manitoba like Thompson, but also quite possibly beyond,” said Pierre Gratton, president and CEO of the association.
As part of the budget, the federal government will establish a one and a half-billion-dollar critical minerals infrastructure fund. It will go towards energy and transportation projects to unlock priority mineral deposits.
The government is also promising it will offer loans to Indigenous communities to help them in purchase equity stakes in major projects.
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