Canadian Prime Minister Justin Trudeau’s authorities is attempting to land supply-chain offers with main German automakers within the face of fierce competitors from the U.S. on electric-vehicle manufacturing.

Trade Minister Francois-Philippe Champagne has launched into a week-long journey to Belgium and Germany, the place he’ll attend the administration convention of Volkswagen and the board assembly of Mercedes-Benz Group AG, amongst different gatherings.

In August, the federal government signed memorandums of understanding with each companies throughout German Chancellor Olaf Scholz’s go to to Canada. This week’s journey is about “bringing that to the following stage,” Champagne stated in an interview.

The Volkswagen memorandum centered on deepening cooperation on battery manufacturing, supplies and significant minerals. The German firm promised to arrange a Canadian workplace for its battery firm, PowerCo. The Mercedes settlement had less-specific language about collaboration within the EV and battery provide chain.

Canadian enterprise teams have been sounding the alarm over huge tax credit contained in the U.S. Inflation Discount Act to encourage electrical automobile manufacturing, warning that Canada is at risk of dropping funding to its southern neighbor. Along with shopper incentives, the U.S. regulation has a producing credit score that subsidizes battery cell and pack manufacturing. Analysts at UBS have stated it “has the potential to make the US a worldwide EV battery hub.”

Champagne stated he’s been assuring corporations that Canada is critical about levelling the enjoying area, because it promised to do in a funds replace in early November.

“Canada intends to stay aggressive with respect to the manufacturing, and I feel it’s effectively understood by the producers,” he stated.

The minister stated Canada wasn’t on the radar of German automakers till lately, however now the 2 sides are working exhausting to develop long-term relationships that reap the benefits of Canada’s wealth of vital minerals comparable to lithium, graphite, cobalt and nickel — all essential for electrical automobile manufacturing.

“I don’t assume that they’d invite the minister of business of Canada to their board assembly in the event that they weren’t critical,” Champagne stated, including he believes offers may be finalized in “the approaching months.”