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BASF picks Canada to expand supplies for booming EV battery market

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BASF SE secured land for a planned battery materials facility in Canada, and the country’s industry minister said on Friday it would be the “first pillar” of the country’s drive to ensure the future of the electric vehicle manufacturing sector.

The German company said the facility in Becancour, Quebec, will produce and recycle cathode active materials (CAM), starting in 2025, to serve electromobility markets in Canada, the United States and Mexico, according to a statement. It did not disclose financial terms. Cathodes are the most complex and costly chemical component of an electric vehicle battery.

Reuters first reported in May of last year that Canada’s government was in early talks with BASF about it tapping a federal clean tech fund to set up production here.

Canada’s Industry Minister Francois-Philippe Champagne, in a telephone interview, confirmed the government planned on supporting BASF’s “substantial” investment, without providing details.

“I see BASF as being the first pillar of the battery ecosystem in Canada,” Champagne said. “It’s certainly a substantial investment, both for the company and for us… as the federal government.”

BASF last September predicted its battery materials revenue would reach more than 1.5 billion euros ($1.64 billion) by 2023 and more than 7 billion euros by 2030 as electric vehicle production surges.

BASF, in partnership with Japan’s Toda Kogyo Corp, already produces CAM at two locations in North America – Ohio and Michigan – including nickel cobalt aluminum oxide and nickel cobalt manganese oxide.

Rich in key materials for EV battery production – including lithium, graphite, cobalt and nickel – Canada has been wooing battery makers to safeguard the future of its car manufacturing industry as the world seeks to cut emissions.

Champagne said BASF’s investment in Canada’s electric vehicle battery ecosystem is the first “in a series,” adding that the aim was to make Becancour a hub, linking Quebec to the heartland of Canada’s automotive industry in Ontario.

Ontario is geographically close to U.S. automakers in Michigan and Ohio, and General Motors Co, Ford Motor Co and Stellantis NV have all announced plans to make electric vehicles at factories in Ontario.

“Both Quebec and Ontario… will be joined when it comes to the automotive sector of the future,” he said. “We’re building around Becancour kind of the full ecosystem of the critical minerals you need to produce a battery… that’s why you’ll see more to come,” Champagne said.

($1 = 0.9164 euro)

(Reporting by Steve Scherer in Ottawa and Ludwig Burger in FrankfurtEditing by Matthew Lewis, Paul Simao and David Gregorio)

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Roots sees room for expansion in activewear, reports $5.2M Q2 loss and sales drop

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TORONTO – Roots Corp. may have built its brand on all things comfy and cosy, but its CEO says activewear is now “really becoming a core part” of the brand.

The category, which at Roots spans leggings, tracksuits, sports bras and bike shorts, has seen such sustained double-digit growth that Meghan Roach plans to make it a key part of the business’ future.

“It’s an area … you will see us continue to expand upon,” she told analysts on a Friday call.

The Toronto-based retailer’s push into activewear has taken shape over many years and included several turns as the official designer and supplier of Team Canada’s Olympic uniform.

But consumers have had plenty of choice when it comes to workout gear and other apparel suited to their sporting needs. On top of the slew of athletic brands like Nike and Adidas, shoppers have also gravitated toward Lululemon Athletica Inc., Alo and Vuori, ramping up competition in the activewear category.

Roach feels Roots’ toehold in the category stems from the fit, feel and following its merchandise has cultivated.

“Our product really resonates with (shoppers) because you can wear it through multiple different use cases and occasions,” she said.

“We’ve been seeing customers come back again and again for some of these core products in our activewear collection.”

Her remarks came the same day as Roots revealed it lost $5.2 million in its latest quarter compared with a loss of $5.3 million in the same quarter last year.

The company said the second-quarter loss amounted to 13 cents per diluted share for the quarter ended Aug. 3, the same as a year earlier.

In presenting the results, Roach reminded analysts that the first half of the year is usually “seasonally small,” representing just 30 per cent of the company’s annual sales.

Sales for the second quarter totalled $47.7 million, down from $49.4 million in the same quarter last year.

The move lower came as direct-to-consumer sales amounted to $36.4 million, down from $37.1 million a year earlier, as comparable sales edged down 0.2 per cent.

The numbers reflect the fact that Roots continued to grapple with inventory challenges in the company’s Cooper fleece line that first cropped up in its previous quarter.

Roots recently began to use artificial intelligence to assist with daily inventory replenishments and said more tools helping with allocation will go live in the next quarter.

Beyond that time period, the company intends to keep exploring AI and renovate more of its stores.

It will also re-evaluate its design ranks.

Roots announced Friday that chief product officer Karuna Scheinfeld has stepped down.

Rather than fill the role, the company plans to hire senior level design talent with international experience in the outdoor and activewear sectors who will take on tasks previously done by the chief product officer.

This report by The Canadian Press was first published Sept. 13, 2024.

Companies in this story: (TSX:ROOT)

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Talks on today over HandyDART strike affecting vulnerable people in Metro Vancouver

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, are set to resume today as a strike that has stopped most services drags into a second week.

No timeline has been set for the length of the negotiations, but Joe McCann, president of the Amalgamated Transit Union Local 1724, says they are willing to stay there as long as it takes, even if talks drag on all night.

About 600 employees of the door-to-door transit service for people unable to navigate the conventional transit system have been on strike since last Tuesday, pausing service for all but essential medical trips.

Hundreds of drivers rallied outside TransLink’s head office earlier this week, calling for the transportation provider to intervene in the dispute with Transdev, which was contracted to oversee HandyDART service.

Transdev said earlier this week that it will provide a reply to the union’s latest proposal on Thursday.

A statement from the company said it “strongly believes” that their employees deserve fair wages, and that a fair contract “must balance the needs of their employees, clients and taxpayers.”

This report by The Canadian Press was first published Sept. 12, 2024.

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Transat AT reports $39.9M Q3 loss compared with $57.3M profit a year earlier

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MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.

The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.

The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.

Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.

On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.

Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.

This report by The Canadian Press was first published Sept. 12, 2024.

Companies in this story: (TSX:TRZ)

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