Volkswagen to build EV battery plant in Ontario

Volkswagen, Europe’s largest automaker, announced that its subsidiary PowerCo will establish an electric vehicle (EV) battery manufacturing facility in St. Thomas, Ontario.

The German auto giant said production is set to begin in 2027, calling it its first overseas “gigafactory” for battery cell manufacturing. Batteries at the plant, once built, would be manufactured by PowerCo.

Officials involved said the plant will likely result in thousands of jobs, at the plant itself, along the supply chain and during the plant’s construction.

The announcement follows an August 2022 Memorandum of Understanding signed between the Government of Canada and Volkswagen to collaborate across a range of sectors to help secure Canada’s position as a manufacturer of EVs and batteries.

The province recently passed legislation that would allow the City of St. Thomas to annex 607 hectares of farmland from the Municipality of Central Elgin. The aim is to turn the parcel into industrial lands as part of what the province called an investment “mega-site.”

Volkswagen is expected to provide more details at a future announcement.