Largest battery factory in Canada to be built by Volkswagen

 Largest battery factory in Canada to be built by Volkswagen

In the photo (from left): Vic Fedeli (Ontario’s Minister of Economic Development, Job Creation and Trade), Kai-Alexander Müller (CFO, PowerCo SE), Sebastian Wolf (COO, PowerCo SE), Justin Trudeau (Prime Minister of Canada), Frank Blome (CEO, PowerCo SE), Jörg Teichmann (CPO, PowerCo SE), and Soonho Ahn (CTO, PowerCo SE). Image courtesy: Volkswagen AG.

Volkswagen’s PowerCo SE’s first cell factory in North America aims to produce up to 90 gigawatt hours per year.

Volkswagen is putting the pedal to the metal when it comes to its electric vehicle (EV) strategy in North America! Volkswagen’s battery company PowerCo SE is planning to build its biggest gigafactory yet in St. Thomas, Ontario, Canada. This battery factory in Canada will have an annual production capacity of up to 90 GWh, making it one of the largest in the world. The project will have a planned investment of up to €4.8 billion (CAD$ 7 billion) until 2030. This development has the potential to create up to 3,000 highly-skilled, direct jobs at the factory. In addition, it can create tens of thousands more indirect jobs in the region.

This new gigafactory will manufacture cutting-edge unified cells, a revolutionary cell technology designed for volume production. Therefore, the factory which will power the Group brands’ EVs in the North American region. And it’s not just Volkswagen that’s investing in Canada’s EV industry though. Since 2020, the province of Ontario has seen nearly CAD$ 13 billion in EV and battery investments.

“When we talk about our made-in-Canada plan, we’re talking about creating good, middle-class jobs now and into the future, we’re talking about clean air for our kids and grandkids, and we’re talking about a strong economy that works for all Canadians. That’s what Volkswagen’s new electric vehicle battery plant in St. Thomas – the largest manufacturing plant in the country once built – is all about. It’s a win for workers, for the community, and for the economy.”

Justin Trudeau, Prime Minister of Canada

Volkswagen’s battery factory in Canada to focus on cutting-edge technology

The company states that for the Volkswagen Group, this investment is a key part of its growth strategy in North America. By introducing the broadest portfolio of full-electric vehicles in the United States and Canada by 2030, as well as expanding the Electrify America charging network, and launching the Scout brand’s first all-electric vehicles in 2026, the automaker is aiming to position itself as a leader in the EV space.

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Young citizens of St. Thomas, Ontario, at the location of the battery factory in Canada (Image courtesy: Volkswagen AG)
Young citizens of St. Thomas, Ontario, at the location of the battery factory in Canada (Image courtesy: Volkswagen AG)

And with the launch of PowerCo SE in July 2022, the company has already announced plans for three new cell factories in Salzgitter, Valencia, and now St. Thomas. By 2030, PowerCo and its partners are expected to generate over 20 billion euros in annual revenue.

The Volkswagen Group believes that its investment in Canada’s EV industry is a sign of its commitment to sustainable transportation and its ambitious growth strategy in North America. And with cutting-edge technology and innovative new vehicles on the horizon, it’s an exciting time for anyone who cares about the future of transportation.


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