Volkswagen Group and Canada Partner for a Sustainable Battery Supply Chain in North America

Volkswagen AG and the Government of Canada aim to promote electric mobility in the country and explore opportunities across the automotive and battery supply chain in Canada.

This was agreed in a memorandum of understanding signed yesterday in Toronto by Volkswagen CEO Herbert Diess and Canada’s Minister of Innovation, Science and Industry, Francois-Philippe Champagne, in the presence of the German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau.

Both parties plan to explore opportunities for Canada to contribute to Volkswagen’s global and regional battery supply chains. PowerCo, the new VW Group battery company, plays a central role in these efforts and will advance the planned cooperation in the areas of battery value creation, raw material supply chains and materials production. cathodes in the North American region.

PowerCo SE is responsible for all global VW Group activities across the battery value chain, securing battery cell supply for Volkswagen’s e-mobility push. The rapidly growing global battery cell business is a key pillar of Volkswagen’s “NEW AUTO” strategy, which aims to make Volkswagen the leading provider of sustainable, software-driven mobility. The goal is to rapidly build up highly standardized cell production capacities totaling 240 gigawatt hours per year in Europe alone. In addition, there are plans to establish a dedicated gigafactory in North America. Possible production sites are currently under study.

Dr. Herbert Diess, CEO of the Volkswagen Group: “Working hand in hand with governments around the world is an absolute prerequisite for achieving our climate goals and I would like to thank the Canadian government for its support. The sourcing of battery raw materials and the production of precursor and cathode materials with a low carbon footprint will enable a rapid and sustainable ramp-up of battery capacity, a key driver of our growth strategy in North America.

For the development of sustainable battery production, the two parties intend to strengthen cooperation based on recognized ESG (Environment, Social, Governance) criteria between PowerCo and the Canadian mining sector, considered a world leader in terms of responsibility and transparency. To this end, PowerCo plans to establish a new dedicated liaison office in Canada. The supply of critical raw materials such as lithium, nickel and cobalt is a key element of the cooperation.

Both parties see significant opportunities for Volkswagen and PowerCo to increase production of cathode materials with partners and to offer Canadian suppliers the opportunity to act as raw material suppliers, refiners and processors.

With its vast raw material resources, good infrastructure and highly developed automotive industry with considerable production expertise and a highly skilled workforce, Canada sees itself as exceptionally well placed for joint ventures.

Volkswagen Group brands plan to offer the most comprehensive electric product portfolio in North America with more than 25 battery-electric models by 2030; at the same time, strong regional capabilities for electric vehicle research and development, vehicle assembly, component production and supply relationships are being expanded across the North American continent.

About Michael S. Montanez

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