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.