Volkswagen Group & Canada to Develop Sustainable Battery Supply Chain in North America

Volkswagen AG and the Canadian Government have signed a Memorandum of Understanding (MoU) aimed at promoting e-mobility in the country and to explore opportunities across Canada’s automotive and battery supply chain. It was signed in Toronto by Volkswagen CEO Herbert Diess and Canada's Minister of Innovation, Science, and Industry, François-Philippe Champagne, in the presence of German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau.

Both parties will investigate opportunities for Canada to contribute to Volkswagen’s global and regional battery supply chains.

PowerCo, the newly founded battery company of the Group, will drive forward the planned cooperation in the fields of battery value creation, raw materials supply chains and cathode material production in the North American region.

Canadian suppliers will be given the opportunity to act as raw material suppliers, refiners and processors.

PowerCo is planning to establish a new, dedicated liaison office in Canada. A key focus of cooperation is the supply of critical raw materials such as lithium, nickel and cobalt.

There are also plans to establish a dedicated gigafactory in North America.

Dr. Herbert Diess, CEO of Volkswagen Group, says: “Volkswagen has been vigorously pushing the transformation to e-mobility, recognizing the industry‘s responsibility in the global battle against climate change. The Group today not only offers the broadest range of electric models to customers but is also rolling out an ambitious battery and charging strategy. Working hand in hand with governments around the world is an absolute prerequisite to meet our climate goals and I want to thank the Canadian government for their support. The supply of battery raw materials and the production of precursor and cathode materials with a low carbon footprint will allow for a fast and sustainable ramp-up of battery capacity — a key lever for our growth strategy in North America.“

Thomas Schmall, Volkswagen Group Board of Management member for Technology, adds: "As an automaker, we see compliance with stringent sustainability criteria as a top priority. For us, the availability of power from renewable sources and a raw materials sector with mines supplying materials conforming to the globally recognized environmental and social standards are crucially important. That is why Canada is an ideal partner for our e-mobility and battery strategy.”

Olaf Scholz, Chancellor of the Federal Republic of Germany, comments: “I welcome that Volkswagen and Canada have signed a Memorandum of Understanding on battery value creation today. This is excellent proof that the cooperation with our close friends and allies in Canada is further deepening also in the context of raw material security and may encourage other companies to follow."

The Volkswagen Group plans to offer a comprehensive electric product portfolio in North America with more than 25 battery-electric models by the end of the decade