Volkswagen’s subsidiary PowerCo has announced plans to build its first North American battery cell factory in Canada, signaling the automaker’s commitment to expanding its battery business and localizing cell production for electric vehicles. The gigafactory, which will be located in St. Thomas, Ontario, will produce sustainable unified cells and is set to start production in 2027. According to VW, Canada was chosen due to the supply of raw materials from local sources and access to clean electricity.
The news follows VW’s recent announcement of a factory in South Carolina, where it plans to build electric pickups and SUVs under its new Scout brand. Production at the South Carolina plant is expected to start by the end of 2026, with a projected output of over 200,000 EVs per year. VW’s push for a stronger foothold in North America demonstrates its commitment to achieving its goal of becoming a leading producer of electric vehicles worldwide.
