Volkswagen to build new electric vehicle battery factory in Canada
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March 13 (UPI) — Volkswagen has chosen Canada for the site of its new electric vehicle battery factory, its first in North America.
Volkswagen Group announced the decision to set up its PowerCo battery cell factory in St. Thomas, Ontario, Canada, in a press release on Monday. Production is slated to begin at the factory starting in 2027.
The battery cell factory in Canada adds to Volkswagen Group’s footprint in North America, following the announcement earlier this month that subsidiary Scout Motors will build 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,” Thomas Schmall, chairman of PowerCo’s supervisory board, said in a statement. “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.”
Volkswagen said Canada “offers ideal conditions” with access to local raw materials and clean energy.
The company plans to develop 25 new battery-powered electric vehicles by the end of the decade. It also intends to increase production at its Chattanooga, Tenn., plant and upgrade its facilities in Puebla and Silao, Mexico, to produce electric vehicles and components at those sites.
“Today’s announcement by Volkswagen is a true testament to our highly skilled workforce and Canada’s strong and growing battery ecosystem,” Francois Phillippe Champagne, Canada’s minister of innovation, said in a statement.
“VW’s decision to establish its first overseas [factory] in Canada speaks to our country’s competitiveness when it comes to attracting major investments,” he said. “It is also a vote of confidence in Canada as the green supplier of choice to the world.”