German automaker Volkswagen has signed a deal with Canada to access raw materials such as nickel, cobalt and lithium for battery production, insiders told Bloomberg News.
German Chancellor Olaf Scholz, who is in Canada for energy talks, is expected to sign the deal during his visit. It’s not just easier access to raw materials for VW factories in America. This would allow Germans to avoid problems with trade rates and tax rules.
US President Joe Biden last week approved new rules for buying electric cars. For example, consumers in the United States can continue to receive a tax deduction of up to $7,500 for such a car if 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. Most battery components must be manufactured or assembled in North America.
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