Canada's federal budget will include an investment of at least C$2 billion ($1.6 billion) for a strategy to accelerate the production and processing of critical minerals needed for the electric vehicle (EV) battery supply chain.

Prime Minister Justin Trudeau's government, which is due to release its budget on the 7th of April 2022, will make the investment to ramp up the extraction and processing of critical minerals such as nickel, lithium, cobalt and magnesium.

The investment from the Canadian government could be spread over more than a year, but no sources have yet commented on the time frame expected. However, something sources have confirmed on is there are ‘many active conversations’ progressing between the Canadian government and companies ‘on the need to accelerate and scale up the production of raw materials used in EV batteries’.

Canada, which is home to a large mining sector, has a multi-billion-dollar fund set up to invest in green technologies and is trying to involve companies in all levels of the EV supply chain to safeguard the future of its manufacturing heartland in Ontario, as the world seeks to cut carbon emissions.

General Motors Co (GM.N), Ford Motor Co (F.N) and Stellantis NV (STLA.MI) have all announced plans to make electric vehicles at factories in the Canadian province.

The demand for battery minerals could see an increase of almost 500% by the year 2050, according to World Bank estimates.

Currently Asia, and in particular China, dominates the overall global production and processing of critical minerals, rare earths and rare metals used to make EVs.

More on this soon - when we see what Prime Minister Justin Trudeau and his governing body say after today (the expected day for it's announcement).