Tuesday, January 31, 2023
News Volkswagen Group’s First North American Battery Plant Could be in Canada

Volkswagen Group’s First North American Battery Plant Could be in Canada

The Volkswagen Group is now looking at potential sites in Canada for its first battery gigafactory in Canada.

  • The automaker’s PowerCo battery subsidiary said it is now looking at potential sites in Canada for a new battery plant.

  • VW’s partner, Umicore, has already committed to invest C$1,5 billion in a new factory near Kingston, Ontario.

  • The new gigafactory should be able to supply enough batteries for 550,000 EVs per year in 2030.

Volkswagen and the Canadian government signed a memorandum of understanding earlier this year when the automaker committed to investing in battery production in the country.

Now, Volkswagen has announced it has begun looking at potential sites in Canada for its upcoming gigafactory, which will be the first VW battery cell factory in North America.

The company reportedly chose to install its factory in Canada instead of the United States despite its closest assembly plant being located in Tennessee because it says Canada is a leader in terms of sustainability and transparency in the mining sector.

In addition, the company says the Canadian Government has proven to be a reliable partner for the automotive industry.

Conceived as a joint venture between Volkswagen Group’s PowerCo division and Belgian Umicore, this new factory, set to open in 2027, should reach a capacity of 40 GWh per year by 2030, which will be sufficient to supply batteries for 550,000 electric vehicles.

On its own, Umicore has already pledged to invest C$1,5 billion in a new Cathode processing facility near Kingston, Ontario that could begin construction as early as next year, making it the first of its type in North America.

Having worked together for a long time already in Europe, Umicore and Volkswagen aim to achieve a 160 GWh per year capacity there by the end of the decade, which could allow the automaker to build up to 2,2 million EVs every year on the continent.

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