Mercedes-Benz Group is pushing into the Canadian battery supplies sector with a brand new mining partnership and a watch to mineral refining and battery cell manufacturing.
The posh automaker signed a memorandum of understanding Aug. 23 with the Canadian authorities, agreeing to collaborate with Ottawa on alternatives within the battery provide chain because it scales up electrical car meeting and jockeys with opponents for provides of key metals corresponding to lithium, nickel and cobalt.
“The clock is working, and the demand is large, so it’s about execution now,” mentioned Markus Schaefer, chief expertise officer on the automaker following the signing.
A part of a enterprise delegation accompanying German Chancellor Olaf Scholz on a three-day tour of Canada, Schaefer put pen to paper in Toronto. The journey additionally had stops in Quebec and Newfoundland. He mentioned conferences with federal, provincial and municipal leaders through the go to confirmed Canadian governments are aligned on making a battery ecosystem.
“We felt they’re working hand-in-hand, and I believe that’s one of the best foundation to realize the very, best consequence right here.”
‘FUTURE INVESTMENTS’
François-Philippe Champagne, federal minister of innovation, science and trade, mentioned the collaboration cope with Mercedes-Benz — in addition to a parallel settlement with Volkswagen — will begin a brand new chapter in relations between Canada and the German automakers.
“It’s going to open the door to future investments.”
Mercedes-Benz’s accord with the federal authorities consists of no outlined dedication to Canada, however a separate deal disclosed Aug. 23 marks a concrete step towards Canadian uncooked supplies discovering their method into the automaker’s batteries.
The corporate is at the moment finalizing a binding settlement with Rock Tech Lithium Inc. for the availability of 10,000 tonnes of lithium hydroxide beginning in 2026. The Vancouver-headquartered miner is creating a lithium mine in Beardmore, Ont., about 150 kilometres northeast of Thunder Bay, in addition to a processing plant in Germany.
Rock Tech CEO Markus Bruegmann mentioned the deal is anticipated to be firmed up within the subsequent couple of weeks.
‘ALL ABOUT PARTNERSHIP’
“That is all about partnership and the sustainable worth chain,” Bruegmann informed media, including that such collaboration is required to satisfy rising demand for EVs.
Monetary phrases of the pending deal haven’t been disclosed.
Schaefer mentioned the settlement with Rock Tech is a part of a brand new stage of EV provide chain funding for Mercedes-Benz. The corporate has already begun constructing batteries with trade companions, however is now transferring additional upstream within the provide chain.
“We’re going now one step additional, working with companions — generally in direct investments, generally in offtake agreements,” he mentioned, noting these offers lengthen “right down to the mine.”
Whereas the possible uncooked materials provides might be coming from Canada, the automaker’s preliminary focus is on securing key inputs for its European, versus North American, crops.
Rock Tech, for example, is planning a lithium hydroxide converter in Guben, Germany that will turn out to be the primary of its type in Europe. The positioning would course of mined materials from the corporate’s Georgia Lake undertaking in Ontario, and probably different mining websites, into the type of lithium wanted for battery cells.
However each corporations mentioned Canadian mineral processing fell into their longer-term plans.
Bruegmann mentioned Canadian mineral processing is a part of the “second step” in its scale-up technique. Schaefer, likewise, mentioned Mercedes-Benz might be seeking to localize its EV battery provide chain in North America as properly, however the firm “has to begin someplace.”
“We’d prefer to refine right here as properly. The query is, what are you able to do in a restricted period of time? The capital even wanted for exploration and all the opposite actions wanted are big … so I believe we’ve got to divide just a little bit the work that has been achieved.
“As soon as [refining] is feasible and doable, then we are going to enter into it.”
As a part of this broader drive to cowl different rising gaps within the EV worth chain, Schaefer mentioned he met with mineral exploration and processing corporations as a part of his go to to Canada.
The German automaker mentioned it plans to hunt additional alternatives in mining, refining, cathode lively supplies and battery cell manufacturing in Canada, however it will not say whether or not it’s in lively talks with additional Canadian battery provide chain corporations.