Volkswagen Group hopes to build battery plant in Canada December 03, 2022 0

An ambitious plan electrification Volkswagen Group provides for the construction of several battery factories, 6 of which are only in Europe. After all, to quickly accelerate the production of electric vehicles, a large supply of batteries is needed. The German group intends to build factories for the production of batteries outside of Europe.

The first of these plants must arise In Canada and will be used to supply batteries to the German group’s factories in North America.


Apparently, the search for the exact location for the construction of the plant has already begun. In fact, an agreement was signed between the Volkswagen Group and the Canadian government to identify potential sites for such a plant. But the collaboration between the German group and the Canadian government goes further. Indeed, the parties will work in other areas as well, such as by raw material supply chains necessary for the production of batteries. The new plant will be operated by PowerCo, the Volkswagen Group’s battery company founded in July 2022.

Per Oliver Bloom, CEO of Volkswagen Group Canada, was chosen for a variety of reasons. In fact, the country, according to the CEO, “offers high standards of sustainability and ideal economic conditions, and the Government of Canada has already established itself as a strong and reliable partner.“.

Additional information will be provided as soon as the exact location for the battery plant is determined. Canada is becoming increasingly important for the battery market. Several automakers are interested in exploring the country’s deposits of raw materials needed for the production of batteries. In addition, we cannot fail to mention that LG Energy Solution and Stellantis will build a battery manufacturing plant in Canada.


The news isn’t over because PowerCo did new agreement with Yumicor. The goal is to expand the current collaboration for “development of regional supply chains related to sustainable battery materials“. Thus, the German group aims to provide i necessary cathode materials for future cell production in North America.

Recall that these two companies already announced in September last year the creation of a joint venture that will supply the main materials for the production of battery cells at the European plants of the German group, starting in 2025. Therefore, the new agreement will be fundamental to the Future Factory in Canada. Shipments of cathode materials and related precursors are expected to be up to 40 GWh per year in 2030. Deliveries are expected to begin in 2027. Yumicor plans to begin construction of a large-scale industrial production plant for cathode and precursor materials in Canada from 2023.

Author: Philip Vendrame



Source: HD Motori


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