The Volkswagen Group has announced that it has picked Canada for its first overseas battery cell factory.
The Group and its batter company PowerCo has selected St. Thomas in Ontario to establish the companies first gigafactory for call manufacturing. The gigafactory will produce sustainable unified cells.
Production has said that it will begin in 2027 and the decision to expand the PowerCo cell production ramp-up from Europe to Canada is further proof of the ambitious growth strategy of the Group in North America.
Oliver Blume, CEO Volkswagen Group: “Our North American strategy is a key priority in our 10-point-plan that we’ve laid out last year. With the decisions for cell production in Canada and a Scout site in South Carolina we’re fast-forwarding the execution of our North American strategy.”
The North American battery factory is part of VW Group’s broader global plan to cut battery costs in half. The company plans to build six factories in Europe. Construction has started at locations in Salzgitter, Germany, and Valencia, Spain. The Canada location will be the site of its third factory and the first in North America.
Volkswagen announced earlier this month that its spinout Scout plans to build its $2 billion factory in South Carolina. The company has also noted that it has ramped up assembly of the all-electric ID.4 compact SUV in Tennessee and plans to upgrade its plans in Mexico.
Thomas Schmall, Board Member for Technology of Volkswagen AG and Chairman of the Supervisory Board of PowerCo SE: “Our gigafactory 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. Canada and Ontario are perfect partners for scaling up our battery business and green economy jobs, as we share the same values of sustainability, responsibility and cooperation. We are committed to be a reliable partner and good neighbor for the people in St. Thomas and Ontario.”
Volkswagen Group is also driving the expansion of Electrify America, with a coast-to-coast charging network in the U.S. and Canada with 800 stations/3,500 DC fast chargers powered by 100% renewable energy with a “Boost Plan” to more than doubling this number by 2026.
Source and picture: Volkswagen