VW’s Power Co has started work on a Cdn $7B battery plant in St. Thomas, Ontario.
The facility will produce 90 GWh of batteries per year by 2027 for North American EVs.
The project is Canada’s largest auto investment and will employ up to 3,000 people.
Volkswagen Group has kicked off construction on its Cdn $7-billion battery cell factory in St. Thomas, Ontario, moving ahead with the plan despite market challenges and ongoing trade issues between Canada and the United States. The automaker’s battery division, Power Co, held a groundbreaking ceremony on Oct. 28, though crews had already begun foundation work earlier that month. The plant is set to start producing batteries in 2027. Volkswagen Power Co Ontario Battery Plant Finishes First Phase The St. Thomas facility will be the third in Power Co’s lineup, following previous sites in Germany and Spain, and it will become Canada’s largest factory when completed. Power Co anticipates that the plant will manufacture up to 90 gigawatt-hours of battery cells each year, enough to power around one million electric vehicles. The initial construction phase will involve roughly 500,000 square feet (50,000 square metres) of formwork and over 32,000 cubic metres of concrete. Power Co expects the facility to have about 1,000 staff at production launch, increasing to as many as 3,000 as development progresses. This Canadian plant will provide battery cells for VW’s Scout Motors assembly site in South Carolina and other North American manufacturing operations. Another Blow to the Canadian Auto Industry: GM Ends Bright Drop Production at Ontario’s CAMI Plant Top Volkswagen executives greenlighted the greenfield site in March 2023 after more than two years of planning. In August, Power Co awarded major construction contracts to local companies and began hiring hundreds of workers. The project is moving forward despite tough conditions for the EV sector in Canada. Last week, General Motors canceled the Bright Drop EV program at its CAMI Assembly Plant in Ingersoll, Ontario, and two battery material projects in Quebec were put on hold indefinitely. VW executives have recognized that delays could happen if demand for EVs doesn’t improve but have confirmed that the production timeline for the St. Thomas facility remains set for 2027. Source: Automotive NewsSource link
