Supply chain for North American market
The Volkswagen Group and Mercedes-Benz have signed a memorandum of understanding with the Canadian government for a North American battery supply chain. Raw materials for EV batteries for the local market may be sourced from Canada in the future.
Under the watchful eye of German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau, retiring Volkswagen Group CEO Herbert Diess and Mercedes-Benz CTO Markus Schäfer signed the MoU in Toronto. That memorandum of understanding does not yet contain any concrete agreements, but both parties agree to jointly look at the possibilities of Canadian raw materials supply for EV batteries.
While Mercedes-Benz only talks about raw materials for the time being, Volkswagen says it is also considering opening a North American battery factory. In the light of this agreement, Canada therefore appears to be a major contender. In any case, Volkswagen wants to open a Canadian office for its subsidiary PowerCo, to accelerate the establishment of North American battery production. Mercedes-Benz says it is in talks with Canadian Rock Tech Lithium for the annual supply of 10,000 tons of lithium hydroxide for EV batteries. That delivery should start in 2026.
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– Thanks for information from Autoweek.nl