Volkswagen, Mercedes-Benz team up with Canada in battery materials push (updated)

Rock Tech Lithium

23/08/2022 16:24

(Adds Mercedes-Benz MoU)
    FRANKFURT, Aug 23 (Reuters) - German carmakers Volkswagen
 VOWG_p.DE  and Mercedes-Benz  MBGn.DE  on Tuesday intensified
efforts to secure access to key battery materials lithium,
nickel and cobalt by striking cooperation agreements with top
supplier Canada.
    The move comes as automakers roll out their electric vehicle
expansion strategies globally in a bid to challenge sector
leader Tesla  TSLA.O . These strategies depend on sufficient
supplies of vital battery materials.
    No financial details were disclosed for the memorandum of
understanding (MoU) agreements, which were signed in Canada
during a visit by German Chancellor Olaf Scholz and a delegation
of German corporate representatives.
    "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," outgoing
Volkswagen Chief Executive Herbert Diess said.
    Volkswagen aims to build, with partners, six large battery
cell factories in Europe by 2030 with a capacity of around 240
gigawatt hours, as well as a dedicated factory in North America
for which it is currently examining potential sites.
    Mercedes-Benz, meantime, is preparing to go fully electric
by the end of the decade wherever market conditions allow, and
has recently struck a deal with China's CATL  300750.SZ  to
ensure battery cell supply in Europe.  urn:newsml:reuters.com:*:nL1N2ZO0I5
    As part of the MoU, Mercedes-Benz will explore a strategic
partnership with Rock Tech Lithium  RCK.V  under which the
Canadian firm would supply the German carmaker and its battery
partners with up to 10,000 tonnes of lithium hydroxide a year
from 2026.
    Volkswagen, too, aims to deepen cooperation with Canada's
mining sector and could even become a shareholder in local
mining firms to make sure it is first in line when it comes to
supply, the company said.  urn:newsml:reuters.com:*:nS8N2XV08S
    Volkswagen's MoU also includes the production ramp-up of
so-called cathode materials, which include nickel cobalt
aluminium (NCA) oxide and nickel cobalt manganese (NCM) oxide.

 (Reporting by Christoph Steitz; Editing by Miranda Murray and
Mark Porter)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))