Canada’s federal government has signed separate agreements with German automakers Volkswagen and Mercedes-Benz that will allow both automakers to access Canadian raw materials for electric vehicle (EV) batteries.
On August 23, Prime Minister Justin Trudeau and German Chancellor Olaf Scholz observed the signing ceremony in Toronto at an event hosted by the German-Canadian Chamber of Commerce and Industry.
In a statement, the federal government said the agreements “will help secure Canada’s position as a leading center of excellence for electric vehicle and battery manufacturing.”
The Volkswagen agreement focuses on deepening cooperation on sustainable battery manufacturing, production of cathode active materials and supply of critical minerals. Volkswagen said it could become a shareholder in local mining companies to ensure it is on the front line of supply. “The sourcing of battery raw materials and the production of precursor and cathode materials with a low carbon footprint will enable a rapid and sustainable ramp-up of battery capacity – a key driver of our growth strategy in North America,” said said the outgoing Volkswagen CEO. said Herbert Diess.
The Mercedes-Benz agreement, meanwhile, aims to strengthen collaboration with Canadian companies along the supply chains of electric vehicles and batteries and to support the development of a sustainable supply chain of essential minerals. in Canada. As part of the deal, Mercedes-Benz will explore a strategic partnership with Rock Tech Lithium, under which the Canadian company would supply the German automaker and its battery partners with up to 10,000 tons of lithium hydroxide per year to from 2026.