Volkswagen has decided to build its new electric vehicle battery factory in Canada, making it its first facility in North America.
In a press release issued on Monday, the Volkswagen Group detailed its intention to locate the future home of its PowerCo battery cell factory in St. Thomas, located in the Canadian province of Ontario.
The factory is expected to begin production in 2027 at the earliest.
The $2 billion EV manufacturing plant
The battery cell factory in Canada is an addition to Volkswagen Group’s footprint in North America. It followed the recent announcement that subsidiary Scout Motors would construct a $2 billion electric vehicle manufacturing plant in South Carolina.
“Our [factory] in Canada sends a strong message: PowerCo is on track to become a global battery player.
With the expansion to North America, we will enter a key market for e-mobility and battery cell production, driving forward our global battery strategy at full speed.”
President of PowerCo’s supervisory board, Thomas Schmall
According to Volkswagen, Canada “offers ideal conditions” because of its direct connections to local raw materials and clean energy.
Volkswagen’s first overseas factory
UPI reports that by the end of this decade, the company intends to have developed a total of 25 new battery-powered electric vehicles.
It also plans to increase production at its plant in Chattanooga, Tennessee, as well as improve its facilities in Puebla and Silao, Mexico, to manufacture electric vehicles and components at those locations.
“Today’s announcement by Volkswagen is a true testament to our highly skilled workforce and Canada’s strong and growing battery ecosystem.
VW’s decision to establish its first overseas [factory] in Canada speaks to our country’s competitiveness when it comes to attracting major investments. It is also a vote of confidence in Canada as the green supplier of choice to the world.”
Francois Philippe Champagne, the minister of innovation for Canada
See Also:
- Volkswagen’s $2B electric vehicle plant under review
- Volkswagen Zwickau Plant sets electric vehicle production record
- Volkswagen China to shut Shanghai Manual Gearbox Plant
- Audi may develop its first EV production plant in US, to qualify for the federal tax credits
- The ID. Tiguan, Volkswagen’s best-selling SUV, will be electric
