The Volkswagen Group and its battery company, PowerCo, have chosen Canada as their first overseas battery cell factory.
The German automaker said the plant, located in St. Thomas, Ontario, will produce battery cells from 2027. PowerCo, a VW company established in July 2022, will be responsible for the automaker’s global battery business, including raw material sourcing, cell production and manufacturing at its Canadian site.
The North American battery plant is part of the VW Group’s broader global plan to cut battery costs in half. The automaker plans to build six of his factories in Europe. Construction has begun in Salzgitter, Germany and Valencia, Spain. The Canadian location will be his third factory location, the first in North America.
Image credit: Volkswagen Group
Volkswagen said the location is evidence of its “ambitious growth strategy” in North America. The company has other expansion plans in the region, including the launch of its U.S.-focused Scout brand, and more than doubling the number of EV chargers in the U.S. and Canada by its Electrify America subsidiary and software division, Cariad. and established offices in Seattle and Silicon Valley. .
Earlier this month, VW spinout Scout announced plans to build a $2 billion plant in South Carolina. Scout launched as a rugged EV brand for US consumers. The factory near Columbia is capable of producing 200,000 EVs per year. Production is expected to start by the end of 2026.
Volkswagen also noted that it is ramping up assembly of its all-electric ID.4 compact SUV in Chattanooga, Tennessee, and plans to upgrade its plants in Puebla and Silao, Mexico, to assemble BEVs. bottom. The Mexico plant could also be used to produce BEV components, such as electric motors, in the late 2000s, the company said.
