The CANADIAN PRESS
The federal government signed separate agreements with Volkswagen and Mercedes-Benz Tuesday that will see the two German auto manufacturers secure access to Canadian raw materials for batteries in electric vehicles.
The federal government has signed agreements with Volkswagen and Mercedes-Benz that will see the two German auto manufacturers secure access to Canadian raw materials for batteries in electric vehicles.
In a news release, Ottawa said these agreements will “help secure Canada’s position as a leading centre of excellence for the manufacturing of electric vehicles and batteries.”
The agreements include Canadian cobalt, graphite, nickel and lithium.
The Volkswagen agreement focuses on deepening co-operation on 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 mineral supply chain in Canada.
“(These agreements) could help fund new mine development in Canada, which is beneficial for our mining sector,” BMO mining and metals analyst, Jackie Przybylowski, said in an interview. “Canada generally has a terrific track record for sustainable mining; encouraging mining here will potentially provide sources of cleaner and more ethically sourced raw materials for electric vehicles globally.”
The agreements follow a string of promised investments by other electric-vehicle manufacturers into the Canadian automotive industry.
More than $13 billion was promised in just eight weeks this past spring to build the needed battery supply chains and shift production from combustion-engine to plug-in vehicles and $3.5 billion promised in the last four years, including investments to make electric school and transit buses, produce and process critical minerals needed to make batteries, and for research and development facilities.
Speaking in front of business leaders, Trudeau acknowledged the strength of Canada’s mining sector, explaining that the country needs to continue to show that it has the natural resources the world needs, while demonstrating that its mining industry doesn’t have to be incompatible with “progressive values, solid labour laws, care for neighbourhoods and communities” and climate change.
“There is a more pressing need for critical minerals and rare earth elements than ever before, and if we want to demonstrate a world that is cleaner and greener … we can’t continue to accept that our minerals and our inputs into our high-quality way of life need to come from authoritarian countries,” he said.
In its most recent budget, the federal government announced its first-ever critical minerals strategy, allocating $3.8 billion toward manufacturing, processing, and recycling projects, but Kyriazis said more could be done to move the needle faster, such as accelerating mining permitting times while meeting the highest environmental, social and governance standards, including Indigenous consultation and partnership.