Volkswagen to build its largest battery cell plant in Canada

German carmaking giant Volkswagen is investing up to €4.8 billion ($5.3 billion) in its first cell factory in North America, which is to become the group's largest battery site to date.
The plant in St Thomas, Canada, has a planned production volume of up to 90 gigawatt hours per year, Volkswagen announced. That would be enough for about 1 million electric vehicles, it said.
"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," Volkswagen AG board member for technology Thomas Schmall said on Friday.
The region would become the second pillar of PowerCo, the internal battery division, alongside Europe, said Schmall, who is also chairman of the supervisory board of PowerCo.
According to VW, the cell factory will create up to 3,000 highly qualified jobs. It will be built on an area of about 150 hectares, which is equivalent to more than 210 football fields.
Production in St Thomas - located about halfway between the Canadian metropolis of Toronto and the US car city of Detroit - is scheduled to start in 2027. Construction is scheduled to begin next year.
Canadian Prime Minister Justin Trudeau was also on hand at the presentation of the plans on Friday. He called the factory a win for workers, for the community and for the economy.
"VW's decision to establish its first overseas gigafactory in Canada speaks to our country's competitiveness when it comes to attracting major investments," Minister of Innovation, Science and Industry Francois-Philippe Champagne said.
The minister and VW did not reveal the level of subsidy offered by the Canadian government to encourage the German carmaker to locate the factory in Canada.