ST. THOMAS, ONT. — Volkswagen has announced it plans to build an electric vehicle battery plant in St. Thomas, in southwestern Ontario.
The European automaker says the Volkswagen Group and its battery company PowerCo will establish its first overseas “gigafactory” for battery cell manufacturing, with the start of production planned for 2027.
The company signed an agreement last year with the federal government to work to identify suitable sites for such a facility in Canada, and they had also committed to investigate ways for Canada to contribute to Volkswagen’s battery supply chains, including raw materials and assembly.
Ontario set the stage last month for the announcement, introducing and quickly passing a law adjusting the municipal boundaries for a 1,500-acre “mega site” in southwestern Ontario.
Economic Development Minister Vic Fedeli said at the time that the site straddled St. Thomas and Central Elgin, and putting the entire piece of land within St. Thomas would eliminate the red tape and barriers that could come with future companies having to deal with two municipalities.
Canada has seen at least 10 major electric vehicle-related commitments totalling more than $16 billion in the past two years as federal and provincial governments work to attract investments in the sector.
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