Volkswagen and PowerCo SE to Build Their Largest Battery cell Factory to date in Canada

Volkwagen Group's battery company PowerCo SE aims to build its largest gigafactory to date in St. Thomas, Ontario, Canada. It will have an annual production capacity of up to 90 GWh in the final expansion phase.

The planned investment of up to €4.8 billion (CAD$ 7 billion) until 2030 has the potential to create up to 3,000 highly skilled jobs at the factory, and tens of thousands more indirect jobs in the region. 

St. Thomas is the company’s first overseas gigafactory for cell manufacturing and will equip battery electric vehicles (BEVs) in the North American region with unified cells.

Groundbreaking is planned for 2024 and production is projected to begin in 2027. 

Volkswagen set up PowerCo SE in Germany, a separate battery company, bundling the Group’s global battery business across the entire value chain.

PowerCo SE has decided on the location of three cell factories in Salzgitter, Valencia and St. Thomas in North America. 

Thomas Schmall, Volkswagen Group Board Member for Technology, says: “North America plays a key role in our global battery strategy. The region will become PowerCo SE’s second pillar beside Europe, with battery cells made in North America for North America. Gigafactory St. Thomas opens the door to a key market for e-mobility and battery cell production. We aim to make PowerCo a global player in the battery business and to pave the way for clean, sustainable mobility. Gigafactory St. Thomas is an important milestone in our roadmap.”

Frank Blome, CEO of PowerCo SE. adds: “We are honoured to partner with Canada, Ontario, and the City of St. Thomas to take the EV industry to a new level. PowerCo was founded in Europe to make a difference in the battery business, offering cutting-edge cell technology and sustainable manufacturing. That includes the creation of up to 3,000 new jobs and great working conditions for our employees in the St. Thomas area. We share the same values and are committed to be a reliable partner for the people in St. Thomas and Ontario.”

Canada's Prime Minister, Justin Trudeau, comments: “When we talk about our made-in-Canada plan, we’re talking about creating good, middle-class jobs now and into the future, we’re talking about clean air for our kids and grandkids, and we’re talking about a strong economy that works for all Canadians. That’s what Volkswagen’s new electric vehicle battery plant in St. Thomas – the largest manufacturing plant in the country once built – is all about. It’s a win for workers, for the community, and for the economy.”

The Volkswagen Group has made battery technology a core element of its 10 Point Plan aimed at speeding up the company’s transformation.