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December 06, 2022 06:00 AM

'Stars are aligning' for Canada, industry minister says after VW, Mercedes meetings

Volkswagen wants to 'get moving' on building its first North American battery plant, preferably in Canada, Industry Minister Champagne says

Grace Macaluso
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    Champagne Mercedes Meeting
    GOVERNMENT OF CANADA/TWITTER

    Volkswagen wants to “get moving” on building its first North American battery plant, preferably in Canada, federal Industry Minister Francois-Philippe Champagne said Monday.

    “I’d say the stars are aligning nicely for Canada and certainly this is a big game changer,” Champagne said during a media conference call after spending that past week meeting with political and industry leaders in Belgium and Germany.

    In a joint statement with Champagne, Volkswagen  announced Dec. 1 it has launched a site search for a battery plant, and views Canada as “one logical option.”

    The announcement came as an addendum to a memorandum of understanding (MOU) VW and Canada signed in August, in which the two parties agreed to co-operate on building a “sustainable” battery electric vehicle supply chain. The MOU did not include investment commitments.

    Champagne downplayed suggestions that VW’s statement implies it may also be exploring other potential sites in North America, such as the United States.

    “Germans being Germans, I don’t think they would invite the minister of industry of Canada with 400 of their top managers and say, ‘let’s get moving, we need scale, we need speed, and let’s get going,’ he said.

    “Obviously you have to get to the final round [but] … I’ve never seen a CEO of company that size say that [Canada is the logical choice] in public … It looks very good for Canada.”

    Champagne said also he met with Mercedes-Benz as part of a follow-up to a similar MOU the federal government signed in August with the automaker.

    The luxury car company, he noted, recently opened an office in Toronto as it looks to develop an EV supply chain in Canada.

    Getting down to business at Mercedes’ Executive Board Meeting today in Stuttgart Germany. Looking forward to having even more of Canada in @MercedesBenz as we work together from vision to action on green mobility. pic.twitter.com/eP47ZDeyMw

    — François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) December 5, 2022

    Amazing tour of Mercedes Plant 56 today in Sindelfingen 🇩🇪
    Digitalization, efficiency, flexibility, sustainability: those are Mercedes’ priorities to build the car of the future and to which Canada has lots to contribute. pic.twitter.com/LFnLNRY8HM

    — François-Philippe Champagne (FPC) 🇨🇦 (@FP_Champagne) December 5, 2022

    Discussions with the automaker focused on Canada’s role in helping Mercedes meet its goal to manufacture carbon-neutral vehicles by 2039, said Champagne, who highlighted the federal government’s plan to support industrial decarbonization.

    Champagne’s overseas travels are aimed at maintaining the momentum of investment announcements that began in March with word that Stellantis and LG Energy Solution would build a $5-billion battery plant in Windsor, Ont.

    “We are the ideal location for a battery ecosystem, and all discussions we had this week are encouraging,” said Champagne.

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