Ottawa is expected to sign separate agreements with Volkswagen and Mercedes-Benz on Tuesday that would see the two German automakers secure access to Canadian raw materials for batteries in electric vehicles.
Prime Minister Justin Trudeau and Chancellor Olaf Scholz are expected to watch the signing ceremony in Toronto on the second day of a three-day visit by the German leader who replaced Angela Merkel in December.
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According to a senior government official, the two MOUs will include securing Canada’s place in the two companies’ supply chains for building electric vehicles.
That includes providing Canadian cobalt, graphite, nickel and lithium needed for electric vehicle batteries, said the official, who spoke on condition they would not be identified because the agreements had not yet been signed.
At a press conference with Trudeau in Montreal on Monday, Scholz pointed out the pending declarations of intent between Canada and the German automakers.
“I am pleased to see that Volkswagen and Mercedes are an example, in addition to the many declarations made and signed between companies during our visit,” he said in German.
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The agreements come a week after US President Joe Biden signed into law a plan to grant tax credits to electric vehicles produced in North America, not just US-built ones.
They also follow a series of promised investments in Canada’s auto industry by other electric vehicle manufacturers.
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More than $13 billion was pledged in just eight weeks last spring to build the necessary battery supply chains and shift production from internal combustion engines to plug-in vehicles.
This comes on top of an additional $3.5 billion pledged over the past four years, including investments in the manufacture of electric school and transit buses, the production and processing of critical minerals needed to make batteries, as well as for research and development institutions.
The German Chancellor is visiting Canada to sign an important energy agreement
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https://globalnews.ca/news/9078607/canada-volkswagen-mercedes-ev-agreements/ Canada signs EV agreements with Volkswagen, Mercedes-Benz – National