RE:RE:VW and MercedesTranslation
Electric vehicles Ottawa signs agreements with Volkswagen and Mercedes-Benz
PHOTO COLE BURSTON, AGENCE FRANCE-PRESSE
Prime Minister Justin Trudeau and German Chancellor Olaf Scholz participated in the signing ceremony in Toronto at an event organised by the German Canadian Chamber of Industry and Commerce.
(Toronto) On Tuesday, the federal government signed separate agreements with Volkswagen and Mercedes-Benz that will allow the two German car manufacturers to access Canadian raw materials for electric vehicle batteries.
Published at 6:33 am Updated at 1:31 pm
ADENA ALI
THE CANADIAN PRESS
Prime Minister Justin Trudeau and German Chancellor Olaf Scholz participated in the signing ceremony in Toronto at an event organised by the German Canadian Chamber of Industry and Commerce.
In a statement, Ottawa said that "these partnerships confirm Canada's place as a centre of excellence for the manufacture of electric vehicles and batteries".
The agreements cover Canadian cobalt, graphite, nickel and lithium.
The Volkswagen agreement focusses on deepening cooperation on the sustainable manufacture of batteries, the production of cathodic active materials and the supply of critical minerals.
The Mercedes-Benz agreement aims to strengthen collaboration with Canadian companies throughout the electric vehicle and battery supply chains and to support the development of a sustainable supply chain for essential minerals in Canada.
"(These agreements) could help fund the development of new mines in Canada, which is beneficial for our mining sector," said Jackie Przybylowski, Mining and Metals Analyst at BMO, in an interview. Canada generally has an excellent record of sustainable mining. Encouraging mining here will potentially provide cleaner and more ethical sources of raw materials for electric vehicles worldwide. ”
The agreements come a week after U.S. President Joe Biden signed a plan to provide tax credits to electric vehicles produced in North America, not just those built in the United States.
They also follow a series of investments promised by other electric vehicle manufacturers in the Canadian automotive industry.
More than $13 billion was pledged in just eight weeks last spring to build the necessary battery supply chains and move combustion engine production to plug-in vehicles.
This was in addition to the additional $3.5 billion promised over the past four years, including investments to manufacture electric school and public transit buses, produce and process the essential minerals needed for battery manufacturing and research and development facilities.
Speaking to business leaders on Tuesday alongside Mr. Scholz, Mr. Trudeau recognised the strength of the Canadian mining sector, explaining that the country must continue to show that it has the natural resources the world needs, while demonstrating that its mining industry does not have to be incompatible with "progressive values, strong labour legislation, concern for neighbourhoods and communities" and climate change.
"There is a more pressing need than ever for critical minerals and rare earths, and if we want to demonstrate a cleaner and greener world... we cannot continue to accept that our minerals and inputs to our way of life come from authoritarian countries," he said.
With information from Lee Berthiaume