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Tesla lobbying the Ontario government as part of an effort to establish a Canadian manufacturing facility

Tesla Inc is reaching out to theOntario government as part of an effort to establish an "advanced manufacturing facility" in Canada. -Indicated by vehicle manufacturers to state offices of the Integrity Commissioner.

The company's Canadian division will work with the government to "identify opportunities for industrial facility licensing reform," according to the July 18 amended return.

Tesla and the office of the Minister for Economic Development, Job Creation and Trade of Ontario did not immediately respond to requests for comment.

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Canada Minister of Industry François-Philippe Champagne said in May that "very active discussions have taken place with many stakeholders" to develop an EV supply chain in Canada.

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Tesla with Chief Elon Musk, the company's production-boosting executive, jokingly shouted "Canada" to shareholders last week.

He said the company could announce a new factory later this year, and he could eventually have 10 to 12 gigafactories. Tesla builds vehicles at his two factories in the United States and his one each in Germany and China.

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US electric-car makers are also sourcing materials to diversify their supply chains and reduce their reliance on China, the world's largest supplier of EV batteries. , which aims to build cars closer to home.

Such efforts could accelerate from a $430 billion bill approved by the US Senate on Sunday. The bill would limit automakers' use of Chinese-made materials by phasing in North American battery components in the required proportions.

After 2023, vehicles with batteries using Chinese parts will no longer receive credits, and critical minerals are also facing sourcing restrictions.

(Reporting by his Akash Sriram of Bangalore, Editing by Arun Koyyur)

© 2022 Reuters