Volkswagen Group and its battery firm PowerCo have picked Canada for its first abroad battery cell manufacturing unit.
The plant, positioned in St. Thomas, Ontario, will produce battery cells starting in 2027, in response to the German automaker. PowerCo, a VW firm that launched in July 2022, will deal with the automaker’s international battery enterprise together with sourcing uncooked supplies, cell manufacturing and manufacturing on the Canada location.
The North American battery manufacturing unit is a part of VW Group’s broader international plan to minimize battery prices in half. The automaker plans to construct six factories in Europe. Building has began at places in Salzgitter, Germany and Valencia, Spain. The Canada location would be the website of its third manufacturing unit, and first in North America.
Volkswagen stated the placement is proof of its “bold progress technique” in North America. The corporate pointed to different growth plans within the area, together with the launch of the U.S. centered Scout model, greater than doubling the variety of EV chargers in U.S. and Canada by its Electrify America subsidiary and software program arm Cariad establishing a places of work in Seattle and Silicon Valley.
Earlier this month, VW spinout Scout introduced plans to construct its $2 billion manufacturing unit in South Carolina. Scout was launched as a rugged EV model geared toward U.S. shoppers. The manufacturing unit, positioned close to Columbia, can be able to producing 200,000 EVs a yr. Manufacturing is scheduled to start by the tip of 2026.
Volkswagen additionally famous that it has ramped up meeting of the all-electric ID.4 compact SUV in Chattanooga, Tennessee and plans to improve its vegetation in Puebla and Silao, Mexico, for the meeting of BEVs. The Mexico manufacturing unit can also be used to supply BEV parts comparable to electrical motors within the second half of the last decade, the corporate stated.