What’s Happening: Volkswagen Group is set to build PowerCo SE’s largest gigafactory to date in St. Thomas, Ontario, with an annual production capacity of 90 GWh in the final expansion phase. The investment of up to €4.8 billion (CAD$7 billion) by 2030 could create up to 3,000 highly skilled jobs at the factory and tens of thousands of indirect jobs in the region.
Why It Matters: This gigafactory marks a significant step in Volkswagen’s ambitious growth strategy in North America and supports Canada’s push for e-mobility and a cleaner, more sustainable economy. The facility will produce cutting-edge unified cells for the Group’s BEVs (Battery Electric Vehicles) in North America.
Key Points:
- The St. Thomas facility is the company’s first overseas gigafactory for cell manufacturing.
- Groundbreaking is planned for 2024, with production expected to begin in 2027.
- The investment includes expanding Electrify America’s charging network and the introduction of the iconic Scout brand’s first all-electric vehicles in 2026.
- The factory is strategically located in the Great Lakes Automotive Corridor, with prime access to regional research and innovation clusters, skilled workforce, and established supply chains.
- The factory will use 100% CO2-free energy.
Bottom Line: Volkswagen Group’s decision to build PowerCo SE’s largest gigafactory in Ontario demonstrates the company’s commitment to e-mobility and its ambitious growth strategy in North America. The investment not only supports thousands of jobs but also bolsters Canada’s position as a key player in the global EV industry.
