VW Chooses Canada as Location for First Overseas EV Battery Gigafactory

The Volkswagen Group, and its battery company PowerCo, have selected St. Thomas in Ontario, Canada to establish VW’s first overseas gigafactory for cell manufacturing. It will produce sustainable unified cells, and the start of production is planned for 2027.

After Salzgitter and Valencia, this will be the third group-owned plant worldwide, and PowerCo’s first cell factory in North America.

It will equip the group brand’s BEVs in the region with battery cells.

It also has plans to upgrade the plants in Puebla and Silao, Mexico, for the assembly of BEVs and potentially for BEV components such as electric motors in the second half of the decade.

VW plans to introduce more than 25 new BEV models in North America through 2030. 

Oliver Blume, CEO Volkswagen Group, says: “Our North American strategy is a key priority in our 10-point-plan that we’ve laid out last year. With the decisions for cell production in Canada and a Scout site in South Carolina we’re fast-forwarding the execution of our North American strategy.”

Thomas Schmall, Board Member for Technology of Volkswagen AG and Chairman of the Supervisory Board of PowerCo SE, adds: “Our gigafactory in Canada sends a strong message: PowerCo is on track to become a global battery player. With the expansion to North America, we will enter a key market for e-mobility and battery cell production, driving forward our global battery strategy at full speed. Canada and Ontario are perfect partners for scaling up our battery business and green economy jobs, as we share the same values of sustainability, responsibility and cooperation. We are committed to be a reliable partner and good neighbor for the people in St. Thomas and Ontario.“

Arno Antlitz, CFO & COO Volkswagen Group, comments: “We now have the unique opportunity to grow profitably in North America and play a key role in driving the transition to electric mobility there. Both new, major projects are integral building blocks of our ambitious growth program for the entire region. We will be able to address an even broader range of customers. Volkswagen has the right strategy, products and scale to take a strong position in the North American market.“

Volkswagen is also driving the expansion of Electrify America, with a coast-to-coast charging network in the U.S. and Canada