Memorandums of understanding the federal authorities signed with two of Europe’s largest automakers are unprecedented, in response to the president of Canada’s Automotive Components Producers’ Affiliation.
On Tuesday the federal authorities introduced it reached agreements with Volkswagen and Mercedes-Benz that will assist the German automakers safe entry to the crucial minerals wanted for electrical car batteries.
These crucial minerals – equivalent to lithium, nickel, cobalt and graphite – are primarily present in elements of northern Ontario and northern Quebec.
“It’s completely unprecedented,” stated Flavio Volpe, president of the Automotive Components Producers’ Affiliation.
He stated the agreements with each corporations sends a sign to different automobile producers that northern Ontario and northern Quebec are the locations to entry crucial minerals in the event that they need to qualify for brand new electrical car tax credit within the U.S.
To qualify for the brand new tax credit within the U.S. – that are value as much as $7,500 for electrical car consumers – automakers should manufacture their autos in North America, and supply most of their crucial minerals and battery supplies from international locations which have a free-trade settlement with the U.S.
The Volkswagen settlement “focuses on deepening cooperation on sustainable battery manufacturing, cathode lively materials manufacturing and demanding mineral provide, amongst others, and on organising a Canadian workplace for PowerCo, Volkswagen’s newly fashioned battery firm,” the federal authorities stated in a press launch.
The Mercedes-Benz settlement focuses on enhancing collaboration with Canadian corporations alongside the electrical car and battery provide chains and supporting the event of a sustainable crucial mineral provide chain in Canada.
“Canada is dedicated to constructing a robust and dependable automotive and battery provide chain right here in North America to assist the world meet world local weather targets,” Minister of Innovation, Science and Trade François-Philippe Champagne, stated in a press launch.
Volpe advised CBC Information the offers imply the federal government of Canada will act as a “concierge” and assist each the automakers and mining corporations construct relationships and develop the assets for electrical car batteries.
“This authorities after all has proven an exemplary dedication to working with Indigenous companions and native communities,” Volpe stated.
“However generally having the federal authorities within the room and in assist makes for lots much less errors in translation, much more goodwill and understanding.”
Volpe added the offers with each corporations, and the transfer to construct extra electrical autos, will develop the attain of Canada’s automotive sector past southern Ontario, to communities within the north.