Federal government partners with Volkswagen and Mercedes-Benz to cement its EV position

Canada's agreements with the two companies focus on material production and attracting investments to the country

The federal government has partnered with two German automakers to deal with the growing demand for clean transportation.

The government signed memoranda of understanding (MOU) with Volkswagen AG and Mercedes-Benz AG to ensure collaboration with the companies, secure Canada’s position on manufacturing electric vehicles (EVs) and their batteries and attract further investment in the space.

The government’s agreement with Volkswagen focuses on sustainable battery manufacturing and setting up a PowerCo office in Canada. PowerCo, Volkswagen’s battery company, launched in July.

The Mercedes-Benz partnership focuses on collaboration among Canadian EV companies and supporting a sustainable mineral supply chain, among other factors.

Minister of Innovation, Science and Industry François-Philippe Champagne visited Germany back in May. A press release announcing the MOUs states this trip, where he met with industry leaders in the automotive sector, encouraged the agreements.

“By partnering with Volkswagen and Mercedes, Canada is strengthening its leadership role as a world-class automotive innovation ecosystem for clean transportation solutions,” Champagne said.

“Canada is committed to building a strong and reliable automotive and battery supply chain here in North America to help the world meet global climate goals.”

Image credit: Minister Champagne/ Twitter

Source: Innovation, Science and Economic Development Canada