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Published: August 24, 2022
The federal government signed separate agreements with Volkswagen and Mercedes-Benz on Tuesday that will secure the German car manufacturers' access to Canadian raw materials for electric vehicle batteries.
Prime Minister Justin Trudeau and German Chancellor Olaf Scholz witnessed the signing ceremony in Toronto at an event hosted by the Canadian-German Chamber of Industry and Commerce.
Ottawa said in a statement that these agreements "will help secure Canada’s place as a leading center of excellence in electric vehicle and battery manufacturing."
The agreements include Canadian cobalt, graphite, nickel, and lithium. The Volkswagen agreement focuses on deepening cooperation in sustainable battery manufacturing, cathode active material production, and critical mineral supply.
The Mercedes-Benz agreement focuses on enhancing collaboration with Canadian companies along the electric vehicle and battery supply chains and supporting the development of a sustainable critical minerals supply chain in Canada.
Jackie Przybielówski, a mining and metals analyst at BMO, said in an interview: "These agreements can help finance and develop a new mine in Canada, which is beneficial for our mining sector."
"Canada generally has a strong track record in sustainable mining; encouraging mining here is likely to provide cleaner raw material sources for electric vehicles worldwide."
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