What’s Happening: Volkswagen Group and its battery company PowerCo have chosen St. Thomas in Ontario, Canada, to establish Volkswagen’s first overseas gigafactory for cell manufacturing, producing sustainable unified cells. The start of production is planned for 2027.
Why It Matters: This decision is a part of the ambitious growth strategy of the Volkswagen Group in North America. It highlights the region’s importance as a growth market for battery electric vehicles. The expansion of the PowerCo cell production ramp-up from Europe to Canada further proves the group’s commitment to e-mobility in the region.
Key Points:
- The decision to expand PowerCo’s cell production ramp-up from Europe to Canada is part of the group’s ambitious growth strategy in North America.
- The gigafactory in St. Thomas will be PowerCo’s first cell factory in North America and equip the Group brand’s BEVs in the region with cutting-edge battery cells.
- Canada offers ideal conditions, including local supply of raw materials and wide access to clean electricity.
- Volkswagen Group plans to introduce more than 25 new BEV models through 2030 and will continue to bring more manufacturing capabilities and know-how to the region.
- Scout Motors, backed by the Volkswagen Group, will enter the highly attractive truck and rugged SUV segments with the electrification of the iconic Scout brand.
- Volkswagen’s software and technology company, CARIAD, has established a technology hub in the U.S. to bring the U.S.-specific digital customer experience to the next level.
- Electrify America, with a coast-to-coast charging network in the U.S. and Canada, plans to double the number of charging stations by 2026.
Bottom Line: The decision to establish Volkswagen’s first overseas gigafactory for cell manufacturing in Ontario, Canada, sends a strong message that the PowerCo is on track to become a global battery player. The move highlights the importance of North America as a growth market for battery electric vehicles and emphasizes Volkswagen’s commitment to e-mobility in the region.
