Volkswagen has picked Ontario, Canada as the location for its first North American battery gigafactory.
PowerCo, the automaker’s subsidiary, said it hopes to begin cell production at its St. Thomas facility by 2027.
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“Our gigafactory in Canada sends a strong message: PowerCo is on track to become a global battery player,” said VW Board Member Thomas Schmall.
The Ontario location will be the third battery production facility overall for PowerCo.
The company said it will equip the Group brand’s battery EVs in the region with “cutting-edge battery cells.”
In addition to its assembly of the all-electric ID.4 in Chattanooga, Tennessee, Volkswagen also has plans to upgrade its plants in Puebla and Silao, Mexico.
Those plants will be used for the assembly of BEVs and potentially for BEV components such as electric motors in the second half of the decade.
Volkswagen Group brands plan to introduce more than 25 new BEV models through 2030.