With Yet Another Global EV-Focused Agreement, Canada is Rapidly Realizing Its New Auto Strategy
March 2, 2026
With Yet Another Global EV-Focused Agreement, Canada is Rapidly Realizing Its New Auto Strategy
Joanna Kyriazis, director of policy and strategy at Clean Energy Canada, made the following statement in response to the global joint declaration between Canada and Germany to collaborate around their auto, battery, and critical minerals sectors:
“Canada isn’t just imagining a new vision for its auto sector—it’s taking concrete steps to realize one. Today’s agreement with Germany to expand bilateral industrial cooperation around electric and hydrogen-powered vehicles, including auto and critical mineral supply chains, is yet another moment that will be remembered when Canada looks back at how it reshaped its auto destiny at a critical time.
“Like the MOUs struck with South Korea and China in January, today’s agreement with Germany is rapidly providing substance to Prime Minister Mark Carney’s recent auto strategy, which rightly focuses on developing new auto relationships with countries that are all-in on the transition to electric vehicles.
“More than one in four cars sold globally is now electric: this is the direction the world is racing toward. In a decade from now, Canada will not want to be building only Blockbuster cars in a Netflix world. What’s more, Canada is uniquely positioned to manufacture EVs not only because of its existing auto industry but because it has the ingredients—namely critical minerals—to capture more of that supply chain than many other countries.
“Underpinning these deals is also the fact that a pillar of Canada’s auto strategy is creating a better market for EVs here at home with the return of consumer incentives, investments in public charging, and enhanced tailpipe emission standards similar to Europe’s (the details of which will be critical). Supply and demand go hand in hand, and a future in which Canada has a thriving advanced auto sector is likewise one in which Canadians enjoy widely available, affordable electric cars.
“To that end, Canada should strengthen its relationship with Europe even further by adopting European car safety standards in addition to our present ones, which would make it easier for European automakers to sell a wider range of affordable EVs into Canada. The idea is supported by 70% of Canadians (with only 10% opposition) and was mentioned in the backgrounder of the federal government’s auto strategy as an area for further development.
“Canada has finally put its foot on the accelerator. It will need to stay there if we want to drive in parallel with the auto industries of Germany, South Korea, and China.”
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Canada and Germany to Work Together in Key Industrial Sectors
On February 23, 2026, the Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions, signed a landmark joint declaration of intent with her German counterpart, Katherina Reiche, Minister for Economic Affairs and Energy, to expand bilateral industrial cooperation in global strategic sectors—in particular, auto and battery manufacturing and critical minerals.