vaughn palmer: 'recalibration' stalls $1 billion b.c. battery plant expansion once celebrated by david eby, justin trudeau
vaughn palmer: the next time the b.c. government touts a billion-dollar project, i suggest waiting until construction is well underway before getting caught up in the celebrations
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chairman of tcc group, e-one moli energy (canada), nelson chang shakes hands with prime minister justin trudeau as b.c. premier david eby look on during a news conference at a lithium battery manufacturing facility in maple ridge in 2023.
darryl dyck
/
the canadian press
victoria — the b.c. ndp and federal liberal governments took victory laps last year after putting up a combined $285 million to secure a high-performance battery plant in maple ridge. the project looked to be an impressive one, according to the nov. 14, 2023 news release.
taiwanese-owned e-one moli and its investors were putting up the balance of $765 million for the $1.05-billion expansion of the company’s existing plant in maple ridge.
the commitment would secure 100 existing jobs and add 350 more. construction to start in the summer of 2024.
when the expanded facility was up and running in 2028, it would be “western canada’s first high-performance lithium-ion battery cell manufacturing facility, creating a new hub in the global battery component supply chain.”
for premier david eby, the green light from e-one moli was proof positive that his government had made the province into “a centre for innovation, investment and cutting-edge technology” and “a leader in building a clean-energy future.”
eby, then heading into an election year, also took a swipe at his critics on the climate action front.
“we know that this is what we have to do,” he told reporters. “the people who suggest that we have to accept that (climate change) as the future and stop taking action are simply wrong.”
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then-b.c. jobs minister brenda bailey observed that jurisdictions all over the world were competing for battery plants. but in this case, b.c. was the chosen one.
“this investment is a powerful example of a global leader in clean-technology manufacturing choosing to anchor its north american production and operations at home,” said bailey. “b.c. has shown time and again that our province is stronger when we invest in people and the vision they have for a cleaner future.”
b.c. officials said that the province’s supply of clean green power was a factor in attracting the project as well. e-one moli would be switching some of its power from natural gas to electricity, “as well as participating in the load attraction program aimed at diversifying industries in b.c. wanting to connect to b.c. hydro.”
prime minister justin trudeau, who joined eby and bailey for the announcement at the e-one moli site, went with that canadian standby, a hockey metaphor.
“this is where the puck is going,” trudeau told reporters. “this is the future we are building every single day. climate policy is economic policy.
“the world is looking to canada. when we support projects like e-one moli’s new facility in maple ridge, we bolster canada’s role as a global clean-tech leader, create good jobs, and help keep our air clean.”
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trudeau’s commitment also addressed eby’s concern that b.c. had been sidelined while the federal government committed to backing development of a trio of battery plants in eastern canada.
the scale of the federal commitment did not warrant close inspection. senior governments were putting up almost $44 billion to underwrite plants in ontario and quebec, according to the parliamentary budget officer.
the maple ridge project drew a mere fraction of those billions, with ottawa contributing $205 million and the province $80 million.
still, it was something to celebrate. in the months following the november 2023 announcement, the new democrats would cite the maple ridge plant again and again as evidence that they were putting the province on the “cutting edge” of battery technology.
but there were no media releases, nor any cause for victory laps with this week’s news that e-moli had hit pause on the maple ridge plant.
“$1 billion lithium-ion battery factory on hold,” read the headline on the front page of the vancouver sun on wednesday.
“over the past year, we have seen a major scale-back in electrification projects globally,” company executive frank so told sun reporter derrick penner by e-mail.
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the cancellations or postponements included 17 lithium-ion battery manufacturing plants of one kind or another.
company chair nelson chang of parent taiwan cement corp. said e-one moli would hold off building any new plants abroad until it reaches “full efficiency” in its gigafactory in taiwan.
in contrast to the rhetorical flourishes that followed last year’s announcement, the new democrats downplayed the significance of the latest development regarding the maple ridge plant.
no more talk of b.c.’s supposed advantages over other jurisdictions in attracting investment. instead, a statement from the energy ministry attributed the pause entirely to “a global recalibration driven by market conditions.”
not for the first time had b.c. arrived late to the game of attracting investment in the latest fashion in cutting-edge technology.
last year, eby declared his enthusiasm for australia-based fortescue’s proposal to build a $2-billion hydrogen plant on a site near prince george.
“i love this project,” the premier declared, and predicted it could become a hub for hydrogen-based development.
this fall, the company walked away after expressing doubts that b.c. could provide the necessary supply of “affordable” electricity and the “favourable” policies to go along with it.
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the premier just can’t resist these premature victory laps.
next time he touts a billion-dollar project, i suggest waiting until construction is well underway before getting caught up in the celebrations.
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