Mercedes-Benz Group AG and the Government of Canada signed a Memorandum of Understanding (MoU) to promote cooperation and to explore ways to advance opportunities across Canada’s electric vehicle supply chain, including, but not limited to, securing sustainable sources of raw materials.

As part of Mercedes-Benz’s Ambition2039, the focus is on the reduction of CO₂ emissions as well as the responsible use of resources along the entire supply chain. In close cooperation with its suppliers, the company is working on finding levers for the consistent reduction of CO₂ as well as seeking to reduce significantly the amount of rare earth metals per electric drive.

Mercedes-Benz is preparing to go all-electric by the end of the decade, wherever market conditions allow. With mass electrification of the automotive sector, demand will increase for specific and responsibly sourced raw materials, in particular cobalt and lithium, as well as nickel, graphite, manganese and copper.

Canada and Mercedes-Benz Group AG support dialogue and relationships that can further work with strategic partners in Canada. In this context, Mercedes-Benz is exploring a strategic partnership with Rock Tech Lithium (earlier post) to supply its vendors with lithium hydroxide to meet global demand for battery electric vehicles. From 2026 onwards, as part of this envisaged partnership, Rock Tech intends to supply Mercedes-Benz and its battery partners with up to 10,000 tonnes of lithium hydroxide annually, starting with a qualification period.

With the envisaged strategic partnership with Rock Tech, Mercedes-Benz is expected to advance localization of European production of state-of-the art battery cells. As one of several partners, Rock Tech is expected to supply high-quality lithium, which is planned to be refined in a CO₂-neutral manner in Guben, Brandenburg (Germany). (Earlier post.)

At this location Rock Tech Lithium is currently building Europe’s first lithium hydroxide converter with a planned investment volume of several hundred million Euros. With its long industrial tradition and existing infrastructure, the region offers the best conditions for becoming a central component of the battery value chain.

In addition to achieving CO₂-neutral production of lithium hydroxide by the end of 2030, Rock Tech Lithium has offered to supply Mercedes-Benz with lithium from mining sites audited to the mining standard of the Initiative for Responsible Mining Assurances (IRMA).