Volkswagen AG and the Government of Canada aim to promote e-mobility in the nation and to discover alternatives throughout Canada’s automotive and battery supply chain. This was agreed in a “Memorandum of Understanding” (MoU) signed at the moment 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 events will examine alternatives for Canada to contribute to Volkswagen’s world and regional battery supply chains. PowerCo, the newly based battery firm of the Group, has a central position in these efforts and will drive ahead the deliberate cooperation in the fields of battery worth creation, uncooked supplies supply chains and cathode materials manufacturing in the North American area.
PowerCo SE is accountable for all world Group actions alongside the battery worth chain, securing battery cell supply for Volkswagen’s e-mobility push. The quickly rising world battery cell business is a key pillar of Volkswagen’s NEW AUTO technique, which goals to make Volkswagen the main supplier of sustainable and software-driven mobility. The plan is to shortly construct up extremely standardized cell manufacturing capacities totaling 240 gigawatt hours per 12 months in Europe alone. In addition, there are plans to set up a devoted gigafactory in North America. Possible manufacturing websites are at present being examined.
Olaf Scholz, Chancellor of the Federal Republic of Germany: “I welcome that Volkswagen and Canada have signed a Memorandum of Understanding on battery worth creation at the moment. This is superb proof that the cooperation with our shut buddies and allies in Canada is additional deepening additionally in the context of uncooked materials safety and could encourage different firms to comply with.”
The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, mentioned: “Canada is quickly becoming the green supplier of choice for major auto companies, including leading European manufacturers, as we transition to a cleaner, greener future. By partnering with Volkswagen, Canada is strengthening its leadership role as a world class automotive innovation ecosystem for clean transportation solutions. 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.”
Dr. Herbert Diess, CEO of Volkswagen Group: “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: “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.”
Joint assertion with respect to sustainable battery manufacturing and dependable uncooked materials supply
For the event of sustainable battery manufacturing, each events intend to increase cooperation based mostly on acknowledged ESG (Environment, Social, Governance) standards between PowerCo and the Canadian mining sector, which is seen as a world chief in phrases of duty and transparency. For this objective PowerCo is planning to set up a brand new, devoted liaison workplace in Canada. A key focus of cooperation is the supply of crucial uncooked supplies akin to lithium, nickel and cobalt.
Both events see important prospects for Volkswagen and PowerCo to ramp up cathode materials manufacturing along with companions and to supply Canadian suppliers a chance to act as uncooked materials suppliers, refiners and processors.
With its huge uncooked materials assets, good infrastructure and extremely developed automotive trade with appreciable manufacturing experience and extremely certified workforce, Canada sees itself outstandingly well-positioned for joint tasks.
Schmall commented: “The Government of Canada is a forward-thinking, effective enabler of businesses creating future-proof, well-paying jobs for Canadians, particularly in the green economy. This is one reason why Volkswagen and PowerCo are excited to work with such an approachable partner offering promising cooperation and engagement at all levels of government.”
Next Step of Growth Strategy for North America
The Volkswagen Group manufacturers plan to supply essentially the most complete electrical product portfolio in North America with greater than 25 battery-electric fashions by the tip of the last decade; on the similar time, robust regional capabilities for EV analysis and growth, car meeting, element manufacturing and supply relationships are being expanded throughout the North American continent.
“We’re committed to bringing electric mobility to consumers and communities in North America. Today’s agreement between the Volkswagen Group and the Government of Canada will enable us to work closely with local suppliers and expand our capabilities,” mentioned Pablo Di Si, incoming President and CEO, Volkswagen Group of America, Inc. “We continue to invest in electrification with plans to launch more than 25 battery-electric vehicles planned by 2030. A broad-based supply of raw materials from across the region will be key to support our ambitious growth plans.”
