The car companies have reached agreements with Canada that will guarantee their access to raw materials needed for battery production, including nickel, cobalt and lithium. A source within the federal government told The Logic the companies will sign memorandums of understanding in Toronto on Tuesday, with Prime Minister Justin Trudeau and German Chancellor Olaf Scholz in attendance. The source did not disclose the terms of the deals, which were first reported by Bloomberg. (Bloomberg, The Logic)

Talking point: The deal with VW is reportedly designed to shorten supply chains for the German carmaker’s U.S. facilities and avoid challenges around tariff and tax regulations. Last week, U.S. President Joe Biden signed a new climate bill that extends electric-vehicle incentives to Canada, including tax credits for vehicles assembled in North America, containing critical minerals recycled anywhere in North America or sourced from U.S. free-trade agreement partners. The Canadian government source—whom The Logic agreed not to name because they were not authorized to speak on the record—said Innovation Minister François-Philippe Champagne had been in talks with VW since April and with Mercedes-Benz since May. They said the deals would have likely gone through with or without changes to the U.S. bill.