New Economy Canada welcomes continued commitment to Canadian manufacturing workers, companies and supply chain.

(OTTAWA, ON) February 24, 2026 – Today’s joint announcement between Canada and Germany to expand industrial cooperation in auto and battery manufacturing and critical minerals represents another step forward in Canada’s efforts to work with likeminded partners to diversify trade, scale innovation and support mutual growth.  

It follows the release of Canada’s new auto strategy and builds off of Canada and Germany cooperation on critical minerals.  

Why this matters: 

• The Canadian auto sector supports 552,000 direct and indirect jobs and generates $16.8 billion in GDP. 

• Canada’s EV sector currently employs 130,000 workers. 
  
• Auto exports to Europe in 2024 totaled $245 million, representing under 1% of total Canadian auto exports. An area with ample room to grow with strategic partnership.  

An example of investment that can be attracted is the $7 billion EV battery facility being constructed by PowerCo, a subsidiary of Volkswagen. When operations begin in 2027 the plant will employ 3,000 workers and produce enough batteries for one million vehicles every year.  

In response, Merran Smith, president of New Economy Canada, said:  

“This agreement with Germany signals a continued commitment to growing Canada’s strategic sectors in clean technology, EV and mining industrial development by expanding our trade footprint while positioning ourselves to attract new investments. By linking our critical minerals, battery manufacturing and skilled workforce to global opportunities, we’re not just growing domestic industries, we’re increasing economic resilience and can enable industrial investment with Canada’s largest European Union (EU) trade partner. 

With global investment in electrified transportation up more than 20 per cent last year, this is a sector that cannot be ignored. Today’s announcement strengthens Canada’s position and makes our country an even more attractive place to invest.”     
 

New Economy Canada is a non-partisan initiative uniting over 60 companies, labour unions and Indigenous organizations, all committed to accelerating investment in Canada’s clean economy. Our partners employ or represent over 410,000 workers and generate annual revenues of over $200 billion CAD. https://neweconomycanada.ca  

For media inquiries: 
Rebecca Spring, Senior Director of Communications, New Economy Canada
Rebecca.spring@neweconomycanada.ca