Volkswagen And PowerCo Pick St. Thomas, Ontario For New Battery Cell Manufacturing Plant

Volkswagen is going all-in on North America.

Like every manufacturer these days, Volkswagen is investing a lot in EV infrastructure. The level of investment goes beyond vehicle design or charging networks, it also includes the supply and manufacturing chain for the products themselves. Volkswagen has just announced its planned location for its Gigafactory – Canada. Specifically, St. Thomas, Ontario.

Run by VW-owned company PowerCo, the new manufacturing plant will focus on creating sustainable unified battery cells for use in VW group EV products. The idea is that PowerCo and VW want to become key players in North American battery production. PowerCo insists that Canada has good access to raw materials, and clean energy, making it an ideal place for expansion.

The Canadian plant is the third plant owned and operated by PowerCo, with the first two being in Salzgitter and Valencia. It’s part of VW group’s plan to expand more in North America, part of which includes the new South Carolina plant meant to produce the forthcoming Scout SUV. Even before that, VW plans to introduce 25 new EV models before 2030, some of which we’ve already seen, like the VW ID.7. Also, production of the US-made ID.4 has increased. The cells produced at the PowerCo plant will be used in these vehicles.

The new plant won’t be online for a long while, though. Volkswagen hasn’t announced an official groundbreaking date, but it does want the plant up and running by 2027. That should slot in nicely against the planned production date of the Scout SUV, in 2026.

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