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New Partnerships in Canada for EV Production

New Partnerships in Canada for EV Production


The government of Canada announced in a news release on August 23rd that they have entered into memoranda of understanding with two major European automakers to increase collaboration across a range of sectors involved in EV production.

The Minister of Innovation, Science and Industry made the announcement of the partnerships with German automakers Volkswagen AG and Mercedes-Benz AG.  These agreements will secure Canada’s position as a leader in manufacturing of electric vehicles and batteries.

Canada is quickly becoming the destination for investments in EV component production.  This new announcement comes not long after plans were made with Stellantis and Ford Canada to revamp their manufacturing facilities in Windsor and Oakville to accommodate EV production.

The agreement made with Volkwagen will focus on sustainable battery manufacturing, critical mineral supply, and cathode active material production.  There will also be an office set up in Canada for Volkswagen’s newly formed battery company: PowerCo.

Enhancing collaboration along the EV and battery supply chains is the focus of the Mercedes-Benz agreement, with Canadian companies at the forefront.  Plans are also in the works to support a sustainable critical mineral supply chain based on environmental, social and governance principles.  Mercedes-Benz is determined to collaborate with Canada in research & development and identifying potential Canadian investments.

Other European companies have recently invested in the battery supply chain.  The investments by Germany’s BASF and Belgium’s Umicore demonstrate the strong potential for collaboration between countries in the clean technology and automotive industries.

The Volkwagen and Mercedes-Benz announcement is another major step toward Canada’s goal of net-zero emissions by 2050.  Canada will continue to grow its clean transportation sector as global and North American demand for zero-emission vehicles grows as well.

Categories: Electric Vehicles