Volkswagen closer to announcing battery plant in Canada: Innovation Minister
Volkswagen announced plans on Monday to establish an electric vehicle battery plant in St. Thomas, Ont.
The proposed project is not yet costed, but production is expected to begin in 2027.
It’s the first overseas cell manufacturing gigafactory for the Volkswagen Group’s battery company PowerCo, the German automaker said Monday, adding that it’s part of the company’s “ambitious growth strategy” for North America.
“We’re fast-forwarding the execution of our North American strategy,” said Volkswagen Group CEO Oliver Blume.
Volkswagen and Canadian Industry Minister François-Philippe Champagne signed an agreement late last year to search for a battery factory site in Canada.
Volkswagen said Monday that Canada offers “ideal conditions” for battery manufacturing, “including the local supply of raw materials and wide access to clean electricity.”
It’s the latest automaker investment announced for Ontario and Canada as the country’s auto and mining industries aim to cash in on the global rush to transition to electric vehicles.
Champagne said the announcement is a testament to Canada’s auto workforce and its growing competitiveness in EV manufacturing.
“It is also a vote of confidence in Canada as the green supplier of choice to the world,” he said in a written statement.
Ontario Industry Minister Vic Fedeli called the investment “historic” and said it will create good-paying jobs in the province.