Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Focus on Electrification
March 13, 2023 11:30 AM

VW picks Canada for North American battery cell plant

The automaker and its in-house battery subsidiary PowerCo on Monday announced the landmark investment in St. Thomas, Ontario, midway between Toronto and Windsor.

David Kennedy
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    VW battery plant Canada

    Pictured from left are VW Group CEO Oliver Blume, Thomas Schmall, VW's technology chief and François-Philippe Champagne, Canada's Minister of Innovation, Science and Industry.

    Volkswagen Group plans to build its first North American battery cell manufacturing plant in Canada as the automaker establishes a regional supply chain to build electric vehicles.

    VW and its in-house battery subsidiary PowerCo on Monday announced the investment in the southwestern Ontario city of St. Thomas midway between Toronto and Windsor.

    Financial details were not immediately available.

    VW said the plant is scheduled to begin producing battery cells in 2027.

    Thomas Schmall, VWs technology chief as well as head of the PowerCo board, said the investment will drive the automaker’s battery strategy forward “at full speed.” 

    “Our gigafactory in Canada sends a strong message: PowerCo is on track to become a global battery player,” he said in a release.

    VW's announcement on Monday did not specify the size of the investment or the capacity of the new plant, but Schmall said in August the company was targeting 20 gigawatt hours of capacity at its first North American site.

    The value of the investment and further details about production capacity are expected to be announced at an event in St. Thomas in the coming months.

    Despite stiff competition, Canada has for months appeared to be the frontrunner for Volkswagen’s inaugural battery cell site in North America.

    In August, the company signed a memorandum of understanding with the Canadian government to cooperate on building a supply chain for battery-electric vehicles. And in December, the automaker singled out Canada as “one logical option” for the plant, though it cautioned other countries were also being considered.

    VW has long said it is working towards setting up regional supply chains in Europe, North America and China for EV production in light of high transport and logistic costs, supply chain risks and geopolitical tensions.

    It announced last week its Scout brand would build a $2 billion manufacturing plant near Columbia, South Carolina, for trucks and SUVs, with production to start in 2026.

    The U.S. Inflation Reduction Act gave the company an incentive to prioritize decisions on North American investments, VW said last week, adding plans for battery plants in Europe were still in place but that it would wait to see whether the IRA spurred Europe to offer better incentives.

    Canada, which is home to a large mining sector for minerals including lithium, nickel, and cobalt, is trying to woo companies involved in all levels of the EV supply chain via a multi-billion dollar green technology fund to safeguard the future of its manufacturing heartland in Ontario as the world seeks to cut carbon emissions.

    Chemicals giant BASF a year ago also secured land in Canada for a planned battery materials facility to better serve electric vehicle markets in the U.S. and Mexico.

    The site for the new plant in St. Thomas is book ended by two railway lines, and has strong highway and utility links, according to the St. Thomas Economic Development, which has spent about two years assembling the greenfield development site.

    The 1,500-acre plot of land sits at the northeastern edge of the city, and until March 2 was partially part of the neighboring municipality of Central Elgin. Provincial legislation redrew the borders around the city earlier this month, putting the entire site within St. Thomas.

    Vic Fedeli, the province’s minister of economic development, job creation and trade, told Automotive News Canada in early March that putting the megasite under one local government was the final component needed to “lure” the next big investor to the province.

    Reuters contributed to this report

    RECOMMENDED FOR YOU
    Mercedes set to invest billions in German, Chinese and Hungarian plants
    Recommended for You
    Mercedes A-Class production Rastatt wheel
    Mercedes set to invest billions in German, Chinese and Hungarian plants
    Volkswagen VW Russia Kaluga factory
    VW sees all its Russian assets frozen by court
    Audi e-tron at 2022 Wuhan auto show
    Audi seeks to catch up in China in test of Germany's automotive grit
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us