Volkswagen AG ( OTCPK:VLKAF ) is looking to acquire stakes in Canadian mines and mine operators as part of a strategy to secure raw material supply for battery production, according to a board member.
A memorandum of understanding is expected to be signed with the Canadian government later on Tuesday to formalize the plan.
A Volkswagen ( OTCPK:VLKAF ) spokesperson confirmed to Bloomberg that the German automaker is working on increasing its battery activities, especially reliable and sustainable supply chains. Part of the goal for Volkswagen ( OTCPK:VLKAF ) is to shorten the supply chains in the U.S. and benefit from tax incentives.
In North America, Volkswagen ( OTCPK:VLKAF ) is also reported to be looking at setting up its own battery-cell manufacturing operations.
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Volkswagen looks to Canada for battery raw materials