Volkswagen Group formalized construction plans new EV battery plant in Canada. This possibility was discussed for some time after the German group announced that they were looking for a plant site in that country. It is for this reason that the Germans have signed an agreement with the Canadian government that also covers the creation of a supply chain for raw materials for batteries.
The choice was made in favor of a new production site City of Saint Thomas, Ontario. The plant will produce new “unified elements” that will be used on most of the German group’s electric vehicles. If there are no delays in the construction schedule of the plant, production activities will begin in 2027. The new manufacturing facility will operated by PowerCoVolkswagen Group, which is exclusively in the battery business.
The new plant will supply batteries for electric vehicles, which will be manufactured by the German group in North America in the future. Thus, a plant that will be fundamental to expansion plans in this market. Actually, in connection with this, the Volkswagen Group is implementing a project that provides for the introduction of many more all-electric models in the United States.
But the German group did more than just announce a new battery plant in Canada. In fact, he also confirmed the project associated with the Scout brand, which we have talked about several times.
Under this brand they will be put on the market SUVs and electric pickups designed specifically for US customers to be produced by the end of 2026 at a new plant to be built in Columbia, South Carolina ($2 billion investment). Annual production is expected to be around 200,000 vehicles. Therefore, the new plant in Canada will also play an important role in ensuring the availability of batteries for these models. Oliver BloomVolkswagen Group CEO commented:
Our strategy for North America is a key priority in our plan, which we identified last year. With the decision to manufacture batteries in Canada and Scout models in South Carolina, we are accelerating our strategy in North America.
Thomas SchmallPowerCo President added:
Our gigafactory in Canada sends a strong message: PowerCo is on its way to becoming a global player in the battery market. With our expansion into North America, we will enter the key market for electromobility and battery cell manufacturing, driving our global battery strategy at full speed. Canada and Ontario are ideal partners to expand our battery business as we share the same values of sustainability, responsibility and collaboration. We strive to be a trusted partner for the people of St. Thomas and Ontario.
Source: HD Motori
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