What Canada’s 2022 Budget Means for the Battery Sector

In April, the Government of Canada released Budget 2022 which substantially builds on commitments to clean tech and the development of a comprehensive plan to localize the battery supply chain and attract investment. In advance of Budget 2022, through meetings and written submissions, Nano One provided suggestions on how Canada can encourage innovation that will drive investment, create jobs, reduce emissions and give North America energy security as we create a responsible battery supply chain. Our voice, along with others in our sector, were listened to and as a result, the Government has introduced revamped and new programs that will have a lasting impact on Nano One.  This Budget creates new potential sources of support for our scale-up to commercialization as well as R&D. Beneficial Tax measures are being introduced that will be helpful directly to Nano One and more broadly support Canada’s effort to attract large anchor projects to fuel innovation and localization of a battery sector.   

Key Highlights Include: 

• $3.8 billion to implement Canada’s first Critical Minerals Strategy to capitalize on a growing need for the minerals used in everything from phones to electric cars
• Establish an investment tax credit of up to 30 percent focused on clean tech 
• Establish the Canada Growth Fund. $15 billion over five years to attract investment
• $1.5 billion in new funding to the Strategic Innovation Fund (SIF) for critical minerals projects with a prioritization given to manufacturing, processing and recycling applications
• $150 million to new programs that support R&D and deployment of technologies and materials to support critical mineral value chains
• $750 million to support Superclusters, now called Global Innovation Clusters, that in part will help fund the battery supply chain in part through fostering world-leading advanced manufacturing

Disclaimer:

This update is provided for informational purposes only and is based on the opinions and interpretations of the management of Nano One Materials Corp. (“Nano One” or the “Company”) as of the date these insights are provided.   None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this does not constitute investment advice or counsel or solicitation for investment in any security. The Company shall not be held responsible for any direct or consequential loss or damage arising from the use of the information provided herein. This includes, but is not limited to, any interpretation, reliance upon, or other use of such information, as well as any inaccuracies, omissions, or typographical errors. The Company does not undertake any obligation to update any that is incorporated by reference herein, except as required by applicable securities laws. Any actions taken as a result of the information provided are solely at your own risk.