The Volkswagen Group’s PowerCo SE battery subsidiary announced it is building a battery factory in St. Thomas, Ontario. With an expected annual production capacity of 90 gigawatt-hours, it will be PowerCo SE’s largest factory, creating upwards of 3,000 highly skilled manufacturing jobs for the region. Groundbreaking is expected to occur in 2024, with production beginning in 2027.
The manufacturing plant is part of a larger plan between Volkswagen, PowerCo, and Canada to expand BEV production in North America. Last August, both companies entered into a Memorandum of Understanding with the Canadian government to focus on value creation and raw material security to promote electric mobility in the country. For Volkswagen, it’s part of a growth strategy that includes a broad portfolio of BEVs by 2030 and the expansion of Electrify America’s coast-to-coast charging network in the US.
St. Thomas is located 20 miles south of London, Ontario, and 120 miles east of Detroit, Michigan. This location in the Great Lakes Automotive Corridor gives the facility access to a skilled workforce, established supply chains, and good transportation infrastructure. Ontario is one of Canada’s largest manufacturing regions and the heart of the country’s auto production.
Once completed, the gigafactory will span approximately 370 acres, the size of about 210 football fields, and be part of a larger industrial park of over 1,500 acres. The industrial park will provide an end-to-end ethical battery supply chain with full access to critical minerals and powered by 100 percent CO2-free energy.
Volkswagen established PowerCo SE as part of its strategy to accelerate its BEV transformation. PowerCo bundles the entire value chain, from raw material supply and research to the construction and operation of gigafactories. Since launching in July 2022, Power Co has committed to building facilities near Salzgitter, Germany, Valencia, Spain, and St. Thomas in Canada. All three facilities are expected to be fully operational by 2027, eventually generating annual revenue in excess of over 20 billion dollars.
In addition to battery production, Volkswagen continues to expand its BEV product line, including the current ID.4, along with the 2024 ID.7 and ID Buzz. Last year it announced the resurrection of the Scout brand in the US to produce a lineup of electric trucks and SUVs.
