Volkswagen has chosen a Canadian web site for the primary EV battery manufacturing unit of its new PowerCo enterprise unit outdoors Europe.
Situated in St. Thomas, Ontario, the manufacturing unit is predicted to start out producing battery cells in 2027, in keeping with a VW press launch. Will probably be the third PowerCo battery plant globally, together with vegetation in Salzgitter, Germany, and Valencia, Spain.
Volkswagen ID.4 constructed at Chattanooga
As VW introduced final summer time, PowerCo will arrange and oversee the community of world battery factories aimed to vertically combine the availability chain for EVs.
VW has been reportedly been contemplating Canada for months, after the Inflation Discount Act (IRA) and the North American sourcing necessities for its new Clear Automobile Credit score enable incentives for EVs and core elements which might be inbuilt Canada or Mexico as a lot as in the event that they had been constructed within the U.S. The PowerCo services are attributable to make a brand new cell format headed into EVs constructed on VW Group’s next-generation Scalable Techniques Platform (SSP).
Teaser for Scout Motors electrical SUV and pickup truck
The IRA incentive guidelines have additionally doubtless influenced choices for elevated North American EV meeting. VW already builds the ID.4 in Chattanooga, Tennessee, however now additionally plans to improve factories in Puebla and Silao, Mexico, to assemble EVs, and doubtlessly elements similar to motors, within the second half of the last decade.
VW additionally just lately introduced a South Carolina plant for its Scout model, which is unrelated to the VW model within the U.S. however would doubtless faucet into the identical battery sources. Situated close to the state capital of Columbia, the Scout manufacturing unit is scheduled to start out producing automobiles in 2026, with an annual manufacturing capability of 200,000 automobiles at full quantity. The primary Scout mannequin shall be a $40,000 electrical SUV, adopted by a considerably pricier electrical pickup. Each fashions are attributable to be unveiled in 2024.
