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Trade Wars Aside, Canada's Clean Tech Startups Help to Decarbonize the U.S. Economy
Even as trade wars heat up, three leading Canadian companies in the electric vehicle battery and solar energy fields are set to expand their presence in the U.S. this year.
Battery startup Electrovaya is among the Canadian companies expanding their presence in the U.S. (Image courtesy of Electrovaya)
The state of U.S.-Canada trade relations is fraught with tension as President Donald Trump carries out his tariff campaign. U.S. auto industry stakeholders are among those warning of a catastrophic outcome unless tempers cool. But some cross-border collaboration on the energy transition is still possible, at least for the time being, as illustrated by the recent activities of three leading Canadian firms in the electric vehicle battery and solar energy fields.
Electrovaya anticipates EV sales momentum in the U.S.
The new tariffs are not the only headwinds faced by automakers in the U.S. In particular, U.S. electric vehicle stakeholders face an uncertain future with the possible discontinuation of the federal EV tax credit. President Trump has also suspended federal grants, including the $5 billion federal NEVI program aimed at building a public EV fast-charging network.
Still, with the notable exception of Tesla in recent months, EV sales in the U.S. continue to rise. Cox Automotive is among the analysts forecasting that the upward trend will continue this year despite the loss of federal support. The Environmental Defense Fund is among those expecting electric truck deployments to keep increasing.
Automakers are also beginning to take a more supportive role in expanding access to both home and public charging stations, and some U.S. states are financing their own EV charging networks. In addition, some states have already deployed their NEVI funds for EV charging.
The Canadian startup Electrovaya is among the EV battery stakeholders expecting more U.S. truck and bus fleet owners to choose electric in the coming years. On Monday, the company announced that it secured a direct loan of US$50.8 million from EXIM, the Export-Import Bank of the United States, bringing its total financing to $82 million toward the buildout of its existing factory in Jamestown, New York.
The factory will produce heavy-duty batteries for electric trucks and buses as well as electric mining equipment, along with batteries for stationary energy storage.
EXIM is an independent federal agency established in 1934 to foster job growth in the U.S. by helping domestic manufacturers export their goods to other countries. Electrovaya expects the Jamestown facility to support its plans for exporting batteries from the U.S. to Japan and Australia as well as Canada, while creating hundreds of jobs in the U.S. and contributing to a more vigorous domestic supply chain for lithium-ion batteries.
Canadian Solar anticipates strong demand for solar energy and storage in the U.S.
Another active cross-border firm is Canadian Solar. The company has been building a manufacturing footprint in the U.S. for both solar modules and stationary battery systems over the past several years, contributing to a major shift in the type of new power generation facilities added to the nation’s grid. Instead of fossil fuels or nuclear energy, new utility-scale solar arrays and battery energy storage systems now dominate U.S. energy capacity additions.
In February, the U.S. Energy Information Administration indicated that battery storage systems could set a new record this year. The agency anticipates that a total of 18.2 gigawatts in new utility-scale storage will come online in 2025, compared to just 10.3 gigawatts last year. “This growth highlights the importance of battery storage when used with renewable energy, helping to balance supply and demand and improve grid stability,” EIA noted.
Under a new agreement with the firm Aypa Power announced on March 6, Canadian Solar will add approximately 370 of its SolBank 3.0 battery units to the U.S. energy storage profile. Notably, Aypa has headquarters in both Toronto and Texas. The batteries will be supplied to two Aypa storage projects, an 806 megawatt-hour (DC) system in California and a 998 megawatt-hour (DC) system in Texas.
In December, Canadian Solar also teamed up with the Maryland firm SunRaycer Renewables to supply its SolBank batteries for two utility-scale energy storage projects in Texas. Both projects are expected to be up and running later this year. The agreement also calls for Canadian Solar to supply up to 2 gigawatts of solar modules for various SunRaycer projects in the U.S.
More solar glass for the U.S.
Canadian Premium Sand is the third Canadian clean tech firm to move forward on U.S. expansion. On January 28, the company announced that it received a tax credit of US$75 million to help repurpose a former glass factory in the U.S. When fully realized, the project will have an annual output of 4 gigawatts in specialized glass for solar panels.
Including its facility in Canada, the company will have a total annual output of 10 gigawatts. At that level, it expects to be the largest supplier of solar glass in North America.
In terms of continuing to make progress on decarbonization, these stories of cross-border collaboration are encouraging. But U.S. clean tech stakeholders still face an uphill battle until Congress steps in and re-establishes the normal order of business to the federal government, in domestic policy as well as international relations.
Tina writes frequently for TriplePundit and other websites, with a focus on military, government and corporate sustainability, clean tech research and emerging energy technologies. She is a former Deputy Director of Public Affairs of the New York City Department of Environmental Protection, and author of books and articles on recycling and other conservation themes.
