Volkswagen Group and its battery firm PowerCo have picked Canada for its first abroad battery cell manufacturing facility.
The plant, positioned in St. Thomas, Ontario, will produce battery cells starting in 2027, in line with the German automaker. PowerCo, a VW firm that launched in July 2022, will deal with the automaker’s world battery enterprise together with sourcing uncooked supplies, cell manufacturing and manufacturing on the Canada location.
The North American battery manufacturing facility is a part of VW Group’s broader world plan to chop 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 web site of its third manufacturing facility, and first in North America.
Volkswagen mentioned the placement is proof of its “formidable development technique” in North America. The corporate pointed to different enlargement 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 facility in South Carolina. Scout was launched as a rugged EV model aimed toward U.S. shoppers. The manufacturing facility, positioned close to Columbia, shall be able to producing 200,000 EVs a 12 months. 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 crops in Puebla and Silao, Mexico, for the meeting of BEVs. The Mexico manufacturing facility may be used to provide BEV elements akin to electrical motors within the second half of the last decade, the corporate mentioned.