German automaker Volkswagen has signed an agreement with Canada to secure access to raw materials such as nickel, cobalt and lithium for battery production, a source familiar with the matter told Bloomberg News.
German Chancellor Olaf Schulz, who is in Canada for talks on energy, is said to have signed the agreement during his trip. This not only gives Volkswagen factories in the US easier access to raw materials. It would also allow Germans to avoid problems with trade prices and tax rules.
US President Joe Biden last week approved new rules on the purchase of electric vehicles. For example, consumers in the United States can still receive a tax cut of up to $7,500 for such a vehicle, provided the manufacturer meets certain requirements. For example, raw materials must be extracted or processed in countries with which the United States has a free trade agreement. Much of the battery’s components must be manufactured or assembled in North America.
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