The federal government has signed separate agreements with Volkswagen and Mercedes-Benz that will see the two German auto manufacturers secure access to Canadian raw materials for batteries in electric vehicles.

Prime Minister Justin Trudeau and German Chancellor Olaf Scholz on Tuesday observed the signing ceremony in Toronto at an event hosted by the Canadian-German Chamber of Industry and Commerce.

Ottawa says these agreements will "help secure Canada's position as a leading centre of excellence for the manufacturing of electric vehicles and batteries."

The Volkswagen agreement focuses on deepening co-operation on sustainable battery manufacturing, cathode active material production and critical mineral supply.

The Mercedes-Benz agreement focuses on enhancing collaboration with Canadian companies along the electric vehicle and battery supply chains and supporting the development of a sustainable critical mineral supply chain in Canada.

The agreements come one week after U.S. President Joe Biden signed a plan to provide tax credits for electric vehicles produced in North America, not only those built in the United States.