Following the news, we get the impression that the transport electrification sector and its battery sector are in poor condition. But what is it really?
It’s fair to say the industry faces temporary headwinds.
Indeed, less aggressive growth than initially projected is being observed in several jurisdictions around the world and is having a domino effect on the entire industry, as well as on investor confidence. We are talking here about a still nascent sector, which must deal with high levels of innovation, fierce competition on a global scale and significant investment needs. According to a report from Financial Times, 40% of projects financed by the Inflation Reduction Act in the United States, and which favor the battery sector and clean energy, are currently adjusting their deployment schedule.
It still seems essential to remember that the slowdown in growth is not a synonym of stopping or worse, regression.
Moreover, Quebec experienced record levels in the second quarter of 2024. Sales of electric vehicles increased by 35% in Canada compared to the previous quarter and by 37% compared to last year. According to the most recent data, more than half (51.6%) of Canada’s electric cars were registered in Quebec.
Representing almost 70% of GHG emissions linked to road transport in Quebec, the fleet of light trucks and heavy vehicles is also in the midst of a transition to electrification, a significant gain in environmental indicators and air quality.
It is also crucial to remember that a chain of companies based in Quebec already exists and is actively working in this area. This network of companies, with varied expertise in innovation, production and services, plays a decisive role in the development of technological and logistical solutions. This complete value chain in a sector such as the battery sector is a first in Quebec and strengthens its leading position on the international scene.
A well-established trend
The electrification of transport is not an ephemeral and local phenomenon, but a profound and lasting transformation. The International Energy Agency estimates that, by 2030, the number of electric vehicles could reach 230 million worldwide, up from 10 million in 2020.
This progression demonstrates rapid adoption, fueled by ambitious public policies, the commitment of many private sector leaders and increased awareness of climate issues.
Innovation comes with challenges
The upheavals we observe today, whether fluctuations in demand, supply difficulties or financial challenges, are inherent to any industrial revolution.
It is important not to lose sight of the long-term objectives: the transition to decarbonized transport, the robustness of our local supply chains and the creation of sustainable jobs.
These ambitions cannot be achieved overnight, and the obstacles encountered are steps in the consolidation of this strategic sector.
It’s normal.
Faced with current challenges, it is therefore essential not to give in to the temptation of pessimism and to stay the course. The transfer to less polluting modes of transport is a social project that goes beyond short-term considerations.
- Michelle LLambias Meunier, President and CEO of Propulsion Québec
- Marie-Hélène Cloutier, President of the Board of Propulsion Québec and Executive Director – Mobility, Customers and Partners – exo
- Jérôme Cantin, vice-president of the Board of Propulsion Québec and vice-president legal and public affairs – Prévost, Volvo
- Isabel Cyr, director of the Propulsion Québec Board and director of government relations & public affairs – Lithion Technologies
- Serge Mai, administrator of the Propulsion Québec Board
- Geneviève Dalcourt, administrator of the Propulsion Québec Council and director of the cooperative education department – ÉTS
- Patrick Gervais, director of the Board of Propulsion Québec and vice-president of trucks & public affairs – Lion Électrique
- Pierre-Serge Labbé, director of the Board of Propulsion Québec and vice-president of mobility services – CAA-Quebec
- Julie Paquet, director of the Board of Propulsion Québec and vice-president of Communications and ESG strategies – Nouveau Monde Graphite
- Clément Sabourin, director of the Propulsion Québec Board and director of sustainable development – Nationex
- Martine St-Onge, director of the Board of Propulsion Québec and vice-president and Head of Manufacturing Operations – Flo
- Laurent Therrien, director of the Board of Propulsion Québec and director, public affairs and communications – Northvolt North America
- Karim Zaghib, director of the Propulsion Québec Board and Karim Zaghib, CEO of Volt-Age, Concordia University
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