Mercedes-Benz signs Memorandum of Understanding with Government of Canada.

Mercedes-Benz signs Memorandum of Understanding with Government of Canada.

August 23, 2022 – On Tuesday, Mercedes-Benz Group AG and the Government of Canada signed a Memorandum of Understanding (MoU) to explore deeper cooperation across all stages of the automotive value chain – from technical development and the extraction of raw materials, to production, service life and recycling.

The purpose of the MoU is 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 - given Canada and Mercedes-Benz's mutual commitments to sustainable development and climate protection and their investments towards a cleaner and greener economy of the future.

Mercedes-Benz is looking to open new ways to responsibly acquire raw materials to rapidly scale up electric vehicle production. Securing direct access to new primary and sustainable sources of raw materials is a vital step down this road. With Canada, Mercedes-Benz has a strong and capable partner to break new ground for a new era of sustainable transformation in the automotive industry.

Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer, responsible for Research & Development and Procurement

I welcome that Mercedes-Benz and Canada have signed a Memorandum of Understanding on battery value creation today. This is excellent proof that the cooperation with our close friends and allies in Canada is further deepening also in the context of raw material security and may encourage other companies to follow.

Olaf Scholz, Federal Chancellor of the Federal Republic of Germany

Canada is quickly becoming the green supplier of choice for major auto companies, including leading European manufacturers, as we transition to a cleaner, greener future. By partnering with Mercedes-Benz, Canada is strengthening its leadership role as a world class automotive innovation ecosystem for clean transportation solutions. Canada is committed to building a strong and reliable automotive and battery supply chain here in North America to help the world meet global climate goals.

Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

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 Stuttgart-based luxury carmaker with the three-pointed star is working on finding levers for the consistent reduction of CO₂ as well as seeking to significantly reduce the amount of rare earth metals per electric drive.

Demand will increase for specific and responsibly sourced raw materials

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 Inc., which could allow the brand with the three-pointed star 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.

To scale up mass production of electric vehicles we need access to raw materials. With the intended Rock Tech-partnership we are diversifying the sourcing of our raw materials as part of a direct sourcing approach to secure the lithium supply for Mercedes-Benz battery production in Europe. As sustainability is a central pillar of our Mercedes-Benz purchasing strategy, we appreciate that Rock Tech plans to supply Mercedes-Benz with lithium from mining sites audited to the standard of IRMA and processed with renewable energy sources.

Gunnar Guethenke, Vice President Procurement and Supplier Quality of Mercedes-Benz AG

This intended agreement marks a decisive step for the supply of high-quality lithium to be processed in Germany. With the envisaged strategic partnership with Rock Tech, Mercedes-Benz is expected to advance localisation of European production of state-of-the art battery cells. This significant amount of lithium sourced directly from Rock Tech could - together with additional partnerships in the future - help the Stuttgart-based carmaker achieve its ambitious electrification goals.

With the envisaged agreement, we intend to provide Mercedes-Benz not only with high-quality lithium hydroxide, but also to establish a strategic partnership that is expected to set new standards in sustainable supply chains. We are very pleased to have found a partner that intends to take important steps with us towards a more resilient and sustainable lithium supply chain to deliver an important part of their strategy and of the e-mobility transformation.

Markus Bruegmann, Chief Executive Officer of Rock Tech Lithium Inc.

Rock Tech Lithium, a cleantech company with operations in Canada and Germany, can help tap new sources of raw materials. Subject to an agreement and if quality and sustainability benchmarks are met, Rock Tech will play a key role in helping Mercedes-Benz to mass produce zero-emission vehicles. As one of several partners, Rock Tech is expected to supply the world’s most valuable luxury automotive brand with high quality lithium, which is planned to be refined in a CO2 neutral manner in Guben, Brandenburg (Germany). 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). Responsibly mined and processed raw materials provide the foundation for a sustainable all-electric Mercedes-Benz vehicle fleet. Respect and protection of human rights as well as of the environment are decisive criteria for choosing sourcing partners.

About Mercedes-Benz

Mercedes-Benz has set the course for CO2 neutrality: With its strategic step from “Electric-first” to “electric-only”, the company is accelerating its transformation into an all-electric future. By continuously integrating the most advanced battery cell technology in cars and vans, Mercedes-Benz aims to increase range during the production life cycle of a model. When it comes to solid-state technology, Mercedes-Benz is working with partners to develop batteries with even higher energy density and safety.

Mercedes-Benz has several battery partnerships with multiple providers in different geographies: ACC and CATL in Europe, Envision AESC in the United States and Farasis and CATL in China.

About Rock Tech Inc.

Rock Tech Lithium Inc. is a cleantech company with operations in Canada and Germany that aims to supply the automotive industry with high-quality, "made in Germany" lithium hydroxide. As early as 2024, Rock Tech intends to commission Europe's first lithium converter with a production capacity of 24,000 tonnes per year. This is equivalent to the volume needed to equip around 500,000 electric cars with lithium-ion batteries.

Rock Tech owns the Georgia Lake Project in Ontario, Canada. The company has set itself the goal of creating the world's first closed-loop for lithium, thus closing the raw material gap on the road to clean mobility. As early as 2030, around 50% of the raw materials used are expected to come from the recycling of batteries. More information can be found here .