Volkswagen Group and its battery company PowerCo have picked Canada for its first overseas battery cell factory.
The plant, located in St. Thomas, Ontario, will produce battery cells beginning in 2027, according to the German automaker. PowerCo, a VW company that launched in July 2022, will handle the automaker’s global battery business including sourcing raw materials, cell production and manufacturing at the Canada location.
The North American battery factory is part of VW Group’s broader global plan to cut battery costs in half. The automaker plans to build six factories in Europe. Construction has started at locations in Salzgitter, Germany and Valencia, Spain. The Canada location will be the site of its third factory, and first in North America.
