Low-Carbon Nickel Project in B.C. to Strengthen Canada’s Electric Vehicle Battery Supply Chain

As the only country in the Americas endowed with all the essential minerals needed for electric vehicle (EV) battery production—namely nickel, cobalt, graphite, and lithium—Canada is positioned to become a leading supplier of high-quality minerals for lithium-ion batteries in EVs. A significant nickel mining project is underway in British Columbia (B.C.) that aims to enhance North America’s battery material supply chain.

FPX Nickel Corp., the company proposing the Baptiste Nickel Project in central B.C., highlights the benefits of mining awaruite, a low-sulfur nickel-iron mineral that eliminates the need for downstream smelting. Coupled with renewable energy from BC Hydro, this approach positions the Baptiste mine as one of the world’s lowest-carbon nickel producers.

“Canada is focused on establishing a battery material supply chain while also supporting the well-established stainless steel supply chain,” stated Andrew Osterloh, Senior VP of Projects and Operations at FPX. “It is crucial to find ways to increase nickel production that are environmentally friendly and do not require intensive downstream processing. Baptiste can achieve both goals, producing a high-grade and clean product that allows us to skip smelting entirely and move directly to final refining for EV battery applications.”

Both the Government of B.C. and BC Hydro have shown support for the Baptiste project, which FPX anticipates will commence production as early as 2031 and have a lifespan of 29 years. On September 3, FPX revealed that the Government of B.C. has included the Baptiste project in its newly established Critical Minerals Office concierge service initiative, aimed at prioritizing critical minerals projects within the province. BC Hydro is also assisting FPX with connecting to the electrical grid.

In 2023, Canada was responsible for 90% of North America’s approximately 176,000 tonnes of annual nickel production, contributing about 4.5% of the global supply. All of this nickel was derived from sulfide deposits found in Ontario, Quebec, Manitoba, Newfoundland, and Labrador, resulting in over $7.5 billion in nickel and nickel-based product exports from Canada in 2022. According to FPX, if the Baptiste project can meet its projected annual output of 60,000 tonnes, it will rank among the top 10 nickel producers worldwide. However, it must first undergo provincial and federal environmental assessments, expected to begin later in 2025.

FPX estimates that the project will create around 2,600 full-time jobs during its construction phase, which may begin in 2029, and provide an average of 875 full-time jobs during operational years. An economic study conducted by Mansfield Consulting suggests that Baptiste could contribute approximately $45 billion to Canada’s GDP throughout its construction and operational life, including nearly $16 billion in total direct, indirect, and induced tax revenues.

“The mining industry provides stable, high-paying jobs,” Osterloh noted. “We are fortunate to have a mature mining sector in British Columbia, comprising a wealth of skilled workers, high-quality contractors, and established vendors, all of which we intend to leverage as much as possible.”

A 2023 preliminary feasibility study by FPX indicated that the Baptiste project could yield a high-margin, low-carbon nickel product at an average of 60,000 tonnes per year throughout its 29-year lifespan. Central to its viability is the discovery of an abundant nickel source in the form of awaruite, located about 90 km northwest of Fort St. James. Unlike typical nickel mining processes that require extensive refining, awaruite can be concentrated on-site without the need for downstream smelting.

By utilizing equipment such as electric trolley-assist trucks to reduce diesel consumption, FPX anticipates that their mine will produce merely 1.2 tonnes of CO2 equivalent for every tonne of nickel extracted, placing it in the lowest 10% of nickel producers globally. In contrast, most nickel mines generate over 30 tonnes of CO2 equivalent per tonne, which is more than 20 times the emissions projected by Baptiste.

“We can employ a relatively straightforward process to produce a very high-quality product while utilizing low-carbon energy sources here in British Columbia,” Osterloh stated. “This represents a significant advancement.”

The advantages of the Baptiste mine will enable high-grade nickel to be supplied directly to industries such as stainless steel production and EV batteries, thereby attracting substantial investments.

Globally, nickel demand is expected to rise by 50% by 2030, driven primarily by its critical role in electric vehicle batteries. Nickel is vital for producing lithium-ion batteries, particularly for EVs, with nickel-based chemistries like nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA) being prevalent due to their numerous benefits:

– **Higher energy density**: Nickel-rich batteries can store more energy, leading to a longer driving range for EVs.
– **Reduced cobalt content**: With cobalt being more expensive and often associated with ethical concerns, increasing nickel content helps diminish reliance on cobalt, making batteries more sustainable and cost-effective.
– **Cost-effectiveness**: Nickel is generally less expensive than cobalt, allowing for reduced overall battery production costs.

The federal and provincial governments of Canada are also investing in EV battery production initiatives, including a joint venture battery factory between Stellantis NV and LG Energy Solution in Windsor, Ontario, along with a Volkswagen EV battery plant in St. Thomas, Ontario.