Volkswagen chooses this country for its first overseas battery cell factory

Volkswagen has announced that it is going to establish its first overseas battery cell factory in St. Thomas, Ontario in Canada. This will be the automaker's first cell plant outside Europe. Volkswagen along with its battery company PowerCo will use this upcoming gigafactory to produce sustainable unified cells. The production process will begin in 2027.

Oliver Blume, CEO of Volkswagen Group, shared that this factory in North America is part of its key priority in the brand's 10-point plan that it created last year. “With the decisions for cell production in Canada and a Scout site in South Carolina we’re fast-forwarding the execution of our North American strategy," added Blume.

The auto company shared that PowerCo's decision to establish the factory in Canada will help its BEVs in the region get the latest technology battery cells which will further push electric mobility there. The companies also added that Canada has the ideal conditions for establishing this battery plant as it will offer the local supply of raw materials and give wide access to clean electricity.

The Volkswagen Group is in process of introducing a lengthy portfolio of full-electric vehicles in the United States. It has plans to drive in more than 25 new fully electric vehicles models through 2030. “We now have the unique opportunity to grow profitably in North America and play a key role in driving the transition to electric mobility there," said Arno Antlitz, CFO and COO of Volkswagen Group. The automaker is also aiming to upgrade the factories in Puebla and Silao, Mexico, for assembling electric vehicles and also its components such as electric motors in the second half of the decade.