Volkswagen's first overseas gigafactory for battery cells is coming to Canada

The news is somewhat surprising, as many manufacturers plan to invest in the United States. There, billion-dollar subsidies are promised thanks to Biden's Inflation Reduction Act. Volkswagen intends to manufacture sustainable battery cells in the gigafactory being built in Canada. According to a company spokesperson, the company-owned battery firm PowerCo will thus accelerate cell production and expand it from Europe to North America. This is further evidence of the ambitious growth strategy of the group in North America.

"Our North America strategy is one of the top priorities in our 10-point plan that we established last year," explained VW CEO Oliver Blume. "With the decisions for cell production in Canada and a Scout site in South Carolina, we are advancing the implementation of our North American strategy."

The North American battery factory is part of VW Group's broader global plan to halve battery costs. The company plans to build six factories in Europe. Construction has begun at the sites in Salzgitter, Germany, and Valencia, Spain. The site in Canada will be the location of the third factory and the first in North America. Earlier this month, the Group announced that its spinout Scout plans to build its $2 billion factory in South Carolina. The company also announced plans to ramp up the assembly of the fully electric compact SUV ID.4 in Tennessee.

"Our Gigafactory in Canada sends a strong signal: PowerCo is on its way to becoming a global battery player," announced Thomas Schmall, Chief Technology Officer of Volkswagen AG and Chairman of the Supervisory Board of PowerCo SE. "With the expansion into North America, we will enter a key market for e-mobility and battery cell production and drive our global battery strategy forward with full force. Canada and Ontario are perfect partners for the expansion of our battery business and green economy jobs, as we share the same values of sustainability, responsibility, and collaboration. We are committed to being a reliable partner and good neighbor for the people of St. Thomas and Ontario."