The federal government in Ottawa has signed agreements with Volkswagen (VLKAF) and
Mercedes-Benz (DMLRY) to provide the German automakers with access to Canadian raw
materials that are used in electric vehicle batteries.
In a news release, the government said the two separate agreements involve the raw materials
cobalt, graphite, nickel and lithium that are used to produce electric vehicle batteries.
The agreement with Volkswagen focuses on enhancing co-operation on sustainable battery
manufacturing, cathode active material production, and critical mineral supply.
The Mercedes-Benz agreement aims to enhance collaboration with Canadian companies and
support the development of a critical mineral supply chain in Canada.
The deals with the German car companies come a week after U.S. President Joe Biden signed
a plan to provide tax credits for electric vehicles that are produced within North America.
Automakers around the world have announced investments of more than $13 billion this year to
build battery supply chains in Canada and accelerate the shift from gasoline powered to electric
vehicles.
In its budget this past spring, the Government of Canada announced a critical minerals strategy
and funding of $3.8 billion for manufacturing, processing, and recycling projects related to
electric vehicles.
Mercedes-Benz stock is down 28% this year at $14.07 U.S. per share. Volkswagen stock is
down 23% year-to-date and trading at EUR139.98 a share.
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