Volkswagen Group to set up battery cell plant in Canada

The Volkswagen Group has stepped up its activities in North America in a bid to take a strong position in this important growth market for battery electric vehicles. The Group and its battery company PowerCo have selected St. Thomas in Ontario, Canada to establish Volkswagen’s first overseas gigafactory for cell manufacturing, which will produce sustainable unified cells, start of production is planned for 2027.

After Salzgitter and Valencia, this will be the third Group-owned plant worldwide and PowerCo’s first cell factory in North America. It will equip the Group brand’s BEVs in the region with cutting-edge battery cells ‒ and is part of a larger plan that Volkswagen and PowerCo agreed upon with Canadian Prime Minister Justin Trudeau's government in August last year. The Memorandum of Understanding signed back then focusses on battery value creation and raw material security in order to promote e-mobility in the country.

Volkswagen had entered the global battery business in July 2022 with the setting up of PowerCo. While PowerCo is to become a key player in the development of the battery value stream in North America, Canada offers ideal conditions, including the local supply of raw materials and wide access to clean electricity. More details on gigafactory St. Thomas are to be revealed in the near future.

The Volkswagen Group is driving forward the introduction of the broadest portfolio of full-electric vehicles in the United States. Group brands plan to introduce more than 25 new BEV models through 2030. In addition, the Group plans to fully leverage the region's power by creating more synergies and making even better use of the innovative strength, technical expertise, production capacities, supply chains and market knowledge of all brands in Canada, the United States, and Mexico.

Volkswagen states that it will continue to bring more manufacturing capabilities and know-how to the region. In addition to its ramped-up assembly of the all-electric ID.4 compact SUV in Chattanooga, Tennessee, Volkswagen also has plans to upgrade the plants in Puebla and Silao, Mexico, for the assembly of BEVs and potentially for BEV components such as electric motors in the second half of the decade.