(Ottawa) Federal Industry Minister François-Philippe Champagne spent much of last year spending big on major electric vehicle battery factories as Canada took steps to solidify its green industrial strategy.

But he warns that the country is reaching the limits of its abundant renewable energy capacity, and that producing more electricity will be essential to sustain the gains.

He says Canada must focus in the coming months and years on the development of small nuclear reactors and the expansion of other renewable energy sources.

Volkswagen is among the companies that made it clear it chose Canada for its first North American electric vehicle battery factory last year, in part because of access to renewable energy.

But Minister Champagne says some project locations are already being adjusted, as regions are already reaching peak power supply.

Quebec Energy Minister Pierre Fitzgibbon warned last May that difficult decisions would have to be made in the province, because not all major projects will be able to be carried out due to a lack of electricity to operate them.