It is likely to be one of the last public appearances that Herbert Diess will make in his capacity as Volkswagen boss.

He has been traveling in Canada as part of a business delegation with Chancellor Olaf Scholz (SPD) since the beginning of the week.

Yesterday, Tuesday, he signed an agreement there that aims to improve VW's supply of critical raw materials - and insists on pointing out what he sees as a positive balance sheet over the past few years.

"Volkswagen has pushed ahead with the transformation to e-mobility with great vigour, and has recognized the industry's responsibility in the global fight against climate change," he says.

The steps now agreed in Toronto, Canada, are “an important lever for our growth strategy in North America”.

Christian Muessgens

Business correspondent in Hamburg.

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Others have to implement the strategy, because Diess, 63 years old, will hand over the Wolfsburg chief post next week after a long fight for leadership to his successor Oliver Blume.

He also knows very well that the entire advance of electromobility depends on battery raw materials, which is why the plans for security of supply created under Diess are at best further strengthened, but by no means fundamentally changed.

behind the competition

VW has high hopes in Canada, as almost all the raw materials that the group needs for its battery production are mined there.

The competitor Mercedes-Benz, also part of the business delegation, has recognized the potential and wants to secure access, for which the Stuttgart group signs a declaration of intent on the sidelines of the Scholz trip.

For other companies, the focus is on energy issues, such as Eon and Uniper.

They want to advance their decarbonization with green ammonia from Canada and are teaming up with the Canadian development company Ever Wind Fuels.

VW wants to intensify the cooperation between its company Powerco and the Canadian mining sector.

Within the group, Powerco controls the structure of the value chain for everything to do with battery technology through to the procurement of raw materials.

In order to secure these, the company could invest in mining companies in Canada, bringing the race for raw material supplies to a new dimension.

Manufacturers of electric cars have long since secured themselves through supply contracts and partnerships, such as Tesla, which has concluded a multi-year supply agreement with the Chinese lithium supplier Ganfeng.

Ford sources 25,000 tons of lithium a year from a project in Argentina.

Linkages under company law with mining companies have not yet become known.

Dramatic supply gaps expected

The reason for the ever new alliances is the limited availability and the price development of the raw materials.

Lithium prices have increased tenfold over the past two years, with corresponding consequences for the cost calculations in the automotive industry.

The consulting company BCG assumes that the situation will continue to deteriorate and that there will be a significant supply gap by the middle of the next decade.

Then, according to the forecast, an annual demand of 4.6 million tons of lithium carbonate will be matched by a supply capacity of the raw materials industry of only 3.5 million tons.

Other materials such as copper or cobalt have also become more expensive.

With partnerships like the one now in Canada, car companies want to secure access from suppliers with recognized environmental and social standards.

The Canadian mining sector is "a world leader in terms of responsibility and transparency," says VW.

The plan also has to do with the growth strategy in North America.

The VW sales figures have been weak there for a long time, but now the Wolfsburg-based company wants to gain a stronger foothold with new models.

"We are continuously investing in electrification and plan to launch more than 25 battery-electric models by 2030," says Pablo Di Si, new head of VW in North America.

A localized battery supply chain is a "key element" for this, including a planned cell factory, which is expected to be built in the USA.

Overall, Powerco wants to invest a double-digit billion amount globally together with partners, in Canada it could be a single-digit billion amount.

VW boss Diess played a key role in pushing the relevant processes during his time at the top, but has recently come under increasing criticism, among other things because of his erratic communication and problems in software development.

After only four years at the top of the group, he has to leave VW.