Volkswagen Group, along with its battery company PowerCo, has announced the selection of St. Thomas in Ontario, Canada, for the establishment of its first overseas gigafactory for cell manufacturing. The new plant, which is expected to start production in 2027.
This decision is a significant milestone in the global roll-out of PowerCo's battery strategy. Following Salzgitter in Germany and Valencia in Spain, this will be the third Group-owned plant worldwide and PowerCo's first cell factory in North America. The new plant will form a part of a larger plan that Volkswagen and PowerCo agreed upon with Canadian Prime Minister Justin Trudeau's government in August 2022. The Memorandum of Understanding signed then focuses on battery value creation and raw material security in order to promote e-mobility in the country.
According to Volkswagen's statement, Canada offers ideal conditions for the new gigafactory, including the local supply of raw materials and wide access to clean electricity. More details on the St. Thomas gigafactory are expected to be revealed in the near future.
The establishment of this new plant will be a significant boost to Canada's electric vehicle industry, which has been growing steadily in recent years. With Volkswagen's investment, the country is expected to further establish itself as a leading player in the global e-mobility sector.
Source: Volkswagen