LRS General Discussion, page-7157

Volkswagen Lines Up Tariff-Friendly Battery Supplies in Deal With Canada
Accords secure raw materials like nickel, cobalt and lithium
Agreements to be signed during Scholz’s current Canada trip





Volkswagen AG and Mercedes-Benz Group AG have sealed agreements with Canada to secure access to raw materials such as nickel, cobalt and lithium for battery production, according to people familiar with the accords.

The memorandums of understanding will be signed Tuesday in Toronto, with German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau in attendance, said the people, who asked not to be identified discussing confidential information.


Germany and Canada plan to work together in “areas such as critical raw materials,” Scholz said during a news conference with Trudeau on Monday in Montreal. “I’m very happy that among the many, many declarations which are being signed during our visit, there are also those planned by Volkswagen and Mercedes, for example, in which a closer cooperation in this area will be sealed."



VW’s agreement is designed to shorten supply chains for its facilities in the US and avoid difficulties linked to tariffs and tax regulations, said one of the people. The move has partly been prompted by new rules that US President Joe Biden signed into law last week, the person added.


A spokesperson for VW said the carmaker and its dedicated unit for its battery business, called PowerCo, are working on ramping up their battery activities, “especially reliable and sustainable supply chains.”




Time to be bullish on Lithium after massive EV demand & supply chain issues.