Federal government announces partnership with German automakers to help demand for EVs and batteries

Canada announced a partnership with two leading German automakers in the form of a memoranda of understanding with Volkswagen AG and Mercedes-Benz AG.

François-Philippe Champagne, Minister of Innovation, Science and Industry, says the agreements will help secure Canada’s position as a leading centre for the manufacturing of electric vehicles and batteries, as well as ensure Canada is a destination for investments in this space.

The Volkswagen agreement focuses on cooperation on sustainable battery manufacturing, cathode active material production and critical mineral supply, among others, as well as setting up a Canadian office for PowerCo, which is Volkswagen’s newly formed battery company.

The Mercedes-Benz agreement focuses on enhancing collaboration with Canadian companies along the electric vehicle and battery supply chains including supporting the development of a sustainable critical mineral supply chain in Canada that is based on environmental, social and governance principles, collaborating in research and development and identifying potential investments.

The agreements were made during a recent visit by Champagne to Germany in May where he met with key business and industry leaders.

“Canada is quickly becoming the green supplier of choice for major auto companies, including leading European manufacturers, as we transition to a cleaner, greener future. By partnering with Volkswagen and Mercedes, Canada is strengthening its leadership role as a world-class automotive innovation ecosystem for clean transportation solutions. Canada is committed to building a strong and reliable automotive and battery supply chain here in North America to help the world meet global climate goals,” said Champagne.