In August, the government signed memorandums of understanding with both firms during German Chancellor Olaf Scholz’s visit to Canada. This week’s trip is about “bringing that to the next level,” Champagne said in an interview.
The Volkswagen memorandum focused on deepening cooperation on battery manufacturing, materials and critical minerals. The German company promised to set up a Canadian office for its battery company, PowerCo. The Mercedes agreement had less-specific language about collaboration in the EV and battery supply chain.
Canadian business groups have been sounding the alarm over massive tax credits contained in the US Inflation Reduction Act to encourage electric vehicle production, warning that Canada is in danger of losing investment to its southern neighbor. In addition to consumer incentives, the US law has a manufacturing credit that subsidizes battery cell and pack production. Analysts at UBS have said…
