A special announcement was made in Toronto yesterday, involving Prime Minister Justin Trudeau, German Chancellor Olaf Scholz and members of the German-Canadian Chamber of Commerce and Industry.
They were there to announce the signing of separate agreements with the Volkswagen Group and Mercedes-Benz. The deals will give the two German automakers easier access to Canadian raw materials for the batteries that will be used in their current and future electric vehicles.
In a statement, Ottawa said the agreements will “help secure Canada’s position as a leading centre of excellence for the manufacturing of electric vehicles and batteries.”
The agreements cover Canadian cobalt, graphite, nickel and lithium.
Markus Schaefer, CTO of Mercedes-Benz Group, and Herbert Diess, CEO of Volkswagen Group, each signed a Memorandum of Understanding (MoU) with Canada's Minister of Innovation, Science and Industry, François-Philippe Champagne.
The MoU with Mercedes-Benz aims to strengthen collaboration with Canadian companies along the electric vehicle and battery supply chains, as well as to support the development of a sustainable supply chain for essential minerals in Canada.
The MoU with Volkswagen will deepen cooperation in sustainable battery manufacturing, cathode active material production and critical mineral supply.
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These partnerships come at a time when German companies are battling to get their hands on raw material supplies with other automakers also making major transitions to electric vehicles.
“What we are experiencing right now is a perfect storm, a multitude of overlapping and mutually reinforcing global crises,” Olaf Scholz said at the event hosted by the German-Canadian Chamber of Commerce and Industry. He spoke in particular about Russia's invasion of Ukraine and its impact on the energy and resource sectors.
Last week, U.S. President Joe Biden signed a plan to provide tax credits for electric vehicles produced in North America, not just those built in the United States. This bodes well for the entire Canadian industry.
And, though nothing’s guaranteed, the agreement announced yesterday will likely lead to further partnerships with Canadian manufacturers and various industries.
