Ottawa is reportedly close to signing separate deals with Volkswagen and Mercedes-Benz on Tuesday. These agreements would give the two German manufacturers access to the Canadian raw materials needed to manufacture batteries for electric vehicles.
Prime Minister Justin Trudeau and German Chancellor Olaf Scholz are expected to take part in the protocol signing ceremony in Toronto, on the second day of the Canadian tour of the chancellor who succeeded Angela Merkel last December.
The two memorandums of understanding will confirm Canada’s place in the two manufacturers’ supply chain for the electric vehicle market, a senior government official has revealed.
Among the resources targeted, we are talking about cobalt, graphite, nickel and lithium, materials essential for the manufacture of batteries for electric vehicles, specified this source, on condition of anonymity since the agreements are still not not signed.
Olaf Scholz gave a hint of the existence of these protocols between Canada and the German auto giants during a press conference alongside Justin Trudeau on Monday.
“I’m happy to see that, in addition to the many announcements that were made and signed with companies during our visit, Volkswagen and Mercedes for example,” he said in German.
The deals come a week after U.S. President Joe Biden signed a policy offering tax credits to electric vehicles made in North America, not just the United States.
A series of other investment announcements have been made recently by other electric vehicle manufacturers in the Canadian auto industry.
In just eight weeks last spring, more than $13 billion in investment was pledged to develop the supply chain needed to manufacture batteries for electric vehicles and to convert combustion car production plants into factories. of electric cars.