Mar 13, 2023
By Jeremy Logan
Volkswagen has declared its intention to construct a battery manufacturing facility in St. Thomas, in southwest Ontario.
The first overseas “gigafactory” for the production of battery cells will be established by the Volkswagen Group Group and its battery company PowerCo, according to the European automaker, with production set to begin in 2027.
In a contract inked with the federal government last year, the business promised to looking into potential locations for such a factory in Canada.
They also agreed to look into methods for Canada to participate in Volkswagen’s battery supply chains, including providing raw materials and assembly.
Last month, Ontario introduced and swiftly passed a law that altered the municipal boundaries for a 1,500-acre “mega site” in southwestern Ontario, laying the groundwork for the announcement.
Economic Development Minister Vic Fedeli said at the time that the site bridged St. Thomas and Central Elgin, and putting the entire piece of land within St. Thomas would eliminate the red tape and barriers that could come with future companies having to deal with two municipalities.
At least ten significant agreements involving electric vehicles worth more than $16 billion have been made in Canada over the last two years as the federal and provincial governments try to draw capital into the industry.
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