Tesla discloses lobbying effort to set up factory in Canada
(Reuters) - Tesla Inc is lobbying the Ontario government as part of an effort to set up an "advanced manufacturing facility" in Canada, a filing by the electric-vehicle maker to the province's Office of the Integrity Commissioner showed.
The company's Canadian unit is working with the government to "identify opportunities for industrial facility permitting reforms", the amended filing from July 18 said.
Tesla as well as the office of Ontario's minister for economic development, job creation and trade did not immediately respond to requests for comment.
Canadian Industry Minister Francois-Philippe Champagne had said in May there were "very active discussions with a number of players" to develop an EV supply chain in Canada.
Tesla has been ramping up production with Chief Executive Elon Musk last week speaking half in jest to shareholders yelling "Canada" - "We've got 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 it could ultimately have 10-12 gigafactories. Tesla manufactures vehicles from two factories in the United States and one each in Germany and China.
U.S. electric-vehicle makers are also looking to source materials and build cars closer home to diversify supply chains and lower their dependence on China, the world's largest supplier of EV batteries.
Such efforts could gain pace from a $430-billion bill approved on Sunday by the U.S. Senate that restricts automakers from using Chinese-made materials by phasing in required percentages of North American-sourced battery components.
After 2023, vehicles with batteries that have Chinese parts could not receive the credit, while critical minerals also face limitations on sourcing.
(Reporting by Akash Sriram in Bengaluru; Editing by Arun Koyyur)
Rebecca Bellan
Tue, August 9, 2022
While onstage at Tesla's annual shareholder event, CEO Elon Musk hinted that the automaker would choose the location for a new gigafactory by the end of the year. Musk jokingly asked his fans where the company should build, and when a few yelled out "Canada!" Musk replied, "I'm half Canadian. Maybe I should."
It seemed like a throwaway comment at the time, but a July lobbyist registration from Tesla reveals the company might actually have its eyes set on the U.S.'s neighbor to the north.
Tesla recently added an amendment to its registration with Ontario’s Office of the Integrity Commissioner that sets forth the automaker's plans to engage with the Ontario government to identify opportunities for "industrial and/or advanced manufacturing facility." To sweeten the deal, Tesla's lobbyists propose such a facility could "increase the competitiveness of Ontario and its ability to attract capital investment."
Tesla did not immediately respond to TechCrunch's requests for comment.
Ontario may not need much of a push to welcome a Tesla gigafactory into its lands. The region already has a thriving automotive ecosystem that plays off its neighbor Detroit. Ford and General Motors already have existing plants there. In fact, in April, the Canadian government invested about $415 million into GM's two new plants in Ontario, including one that will produce electric vehicles.
“By making Ontario a competitive business environment, including reducing the cost of doing business by $7 billion annually, we have attracted nearly $16 billion in electric vehicle investments in the last 20 months," Vic Fedeli, minister of Ontario's economic development, job creation and trade, said in a statement shared with TechCrunch. "We are building an end-to-end supply chain right here in Ontario, and expect to continue to see more companies from around the world looking to our province as a place to invest and grow.”
Musk said during the shareholder meeting last week that Tesla could ultimately have 10 to 12 gigafactories globally. Even though Tesla has opened gigafactories in Berlin and Shanghai, the U.S. still makes up for the vast majority of Tesla vehicle sales globally, so it makes sense the company might choose another North American location for its next factory -- especially considering the headaches the Shanghai factory has endured, what with consistent lockdowns and factory line updates causing vehicle sales in China to fall.
It's possible that Tesla is rushing to find locations to build batteries and vehicles closer to home after the Inflation Reduction Act was approved on Sunday by the U.S. Senate. The $430 billion bill could restrict automakers from using Chinese-made materials and require them to use North American-sourced battery components if they want to be eligible for consumer tax credits for EV purchases.
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