Germany’s heavyweights in the automotive industry VolkswagenGroup and Mercedes-Benz want to be more involved in the future Canada work together. During the Chancellor’s visit to Canada Olaf Scholz (64; SPD), both companies signed declarations of intent on electric mobility on Tuesday in Toronto in the presence of Canada’s Prime Minister Justin Trudeau (50).
The Chancellor welcomed the statements made by the companies. Scholz was quoted as saying that the examples could encourage other companies to follow suit.
The outgoing Volkswagen CEO Herbert Diess (63) personally signed the letter of intent. Accordingly, his company, together with the Canadian government, wants to promote e-mobility in the country and explore the potential of the Canadian automotive and battery supply chain, according to a VW statement. “The supply of battery raw materials and the production of precursor and cathode materials with a low carbon footprint will enable a rapid and sustainable expansion of battery capacities,” said Diess. This is an important lever for Volkswagen’s growth strategy in North America.
Volkswagen wants to invest in Canadian mines
It had previously become known that the VW Group intends to invest in Canadian mines in the future to secure raw materials for electric car batteries. “We don’t open our own mines, but we want to participate in Canadian mines and mine operators,” said Thomas Schmall (58), the group’s board member responsible for technology and batteries, to the “Handelsblatt” (Tuesday). VW wants to secure quantities and prices through long-term supply agreements, for example as part of a joint venture with the VW battery subsidiary PowerCo.
“Canada has practically all the raw materials we need for battery production,” Schmall said. “There are large volumes of the highest grade nickel, plus copper, cobalt. And there’s a lot of mining activity.” For example, 20 to 30 percent of a mine’s annual production could be purchased from the PowerCo at a fixed price, and the mine operator could then sell the rest on the world market.
On the Mercedes-Benz side, Markus Schäfer (57), the board member responsible for development and purchasing, signed the declaration of intent. Mercedes said it wants to deepen collaboration across the automotive value chain and promote economic opportunities within Canada’s electric vehicle supply chain. This includes, among other things, access to primary raw material sources.
With the ramp-up of electromobility, the demand for specific raw materials will increase, especially for cobalt and lithium. With the dialogue, the cooperation with strategic partners on site should also be expanded. As part of a planned Partnership with the company Rock Tech Lithium Mercedes-Benz and its battery partners are to be supplied with up to 10,000 tons of lithium hydroxide per year. The intended collaboration is scheduled to start in 2026 and will mark a crucial step for the supply of high-quality lithium, which will be used in Germany should be processed, it was said by Mercedes.