Volkswagen, Mercedes-Benz enhance efforts to safe EV uncooked supplies in Canada


Dive Temporary:

  • Volkswagen and Mercedes-Benz signed agreements with the federal government of Canada on Tuesday to safe entry to lithium, cobalt and different uncooked supplies utilized in electrical car batteries.
  • Volkswagen will ramp up efforts to supply uncooked supplies in Canada, in keeping with a memorandum of understanding. The settlement will “provide Canadian suppliers a possibility to behave as uncooked materials suppliers, refiners and processors”  for the automaker, the corporate mentioned in a press release. 
  • Mercedes-Benz may even discover alternatives for mining, refining and cell manufacturing within the nation, as a part of a separate memorandum. As a part of the settlement, the corporate additionally intends to signal a take care of Canada-based Rock Tech Lithium for as much as 10,000 tonnes of lithium hydroxide a yr.

Dive Perception:

Automakers are below rising strain to deliver EV element sourcing and manufacturing to North America. The U.S. Inflation Discount Act signed earlier this month requires parts be primarily sourced and produced in North America or allied nations if autos are to qualify for shopper buying incentives.

Canada is among the many largest Class 1 battery-grade nickel producers, in keeping with the Worldwide Vitality Affiliation. The nation is moreover a big producer of cobalt and has a big reserve of lithium, the U.S. Geological Service mentioned in annual commodity stories. 

“Mercedes-Benz is trying to open new methods to responsibly purchase uncooked supplies to quickly scale up electrical car manufacturing,” mentioned Chief Expertise Officer Markus Schaefer, who oversees procurement for the automaker. “Securing direct entry to new main and sustainable sources of uncooked supplies is an important step down this street.”

Volkswagen additionally mentioned there may be important alternative to safe wanted minerals in Canada, noting that it plans to determine a liasion workplace within the nation targeted on cooperative efforts to spice up uncooked materials provide. The automaker is inspecting potential websites to construct a devoted gigafactory for cell manufacturing in North America. 

“A broad-based provide of uncooked supplies from throughout the area shall be key to help our formidable development plans,” mentioned Pablo Di Si, incoming president and CEO of Volkswagen Group of America.

The agreements with Mercedes-Benz and Volkswagen additionally come as Canada finalizes a Crucial Minerals Technique to extend the provision and processing of lithium, graphite, nickel, cobalt, copper and rare-earth components. The technique is backed by almost C$4 billion (roughly $3.08 billion) from the nation’s 2022 price range, in keeping with a authorities report.

“Merely put, there is no such thing as a power transition with out crucial minerals, and for this reason crucial mineral provide chain resilience is an growing precedence for superior economies,” wrote Jonathan Wilkinson, Minister of Pure Assets, within the report. 

This story was first printed in our weekly publication, Provide Chain Dive: Procurement. Enroll right here.


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