The Canadian province of Québec seems to be an ideal location for large-scale battery production—it is rich in critical battery metals, and has plenty of cheap and clean hydropower. The provincial government is heavily incentivizing the extraction of key minerals such as lithium, nickel and graphite, and recently announced plans to invest up to 3 billion Canadian dollars (2.4 billion US bucks) in battery production.

Lion Electric is planning to build a 5 GWh battery factory in Québec, and companies including Nemaska Lithium and Nouveau Monde Graphite have launched products to produce and refine graphite and lithium. Now Electrek reports that the Québec government is in talks with Tesla about possibly establishing battery production in the province.

Tesla has already indirectly invested in Québec’s lithium resources through a deal with Piedmont Lithium, which is involved with a lithium project in Quebec’s Abitibi region.

Québec Economy Minister Pierre Fitzgibbon “met with Tesla executives during a mission in California last month,” said a spokesperson. “They discussed Québec’s place in Tesla’s supply chain.”

Le Journal de Montreal reported that talks “have been moving forward over the last few months.”

Is Tesla just looking for lithium, or might Québec be the site of the next Gigafactory? No details are on offer at this point.

Source: Le Journal de Montreal via Electrek