Volkswagen has chosen a Canadian web site for the primary EV battery manufacturing facility of its new PowerCo enterprise unit exterior Europe.

Positioned in St. Thomas, Ontario, the manufacturing facility is predicted to begin producing battery cells in 2027, based on a VW press launch. It will likely be the third PowerCo battery plant globally, together with crops in Salzgitter, Germany, and Valencia, Spain.

Volkswagen ID.4 constructed at Chattanooga

As VW introduced final summer season, PowerCo will arrange and oversee the community of worldwide battery factories aimed to vertically combine the provision 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 permit incentives for EVs and core parts which are inbuilt Canada or Mexico as a lot as in the event that they had been constructed within the U.S. The PowerCo services are as a consequence of make a brand new cell format headed into EVs constructed on VW Group’s next-generation Scalable Methods Platform (SSP).

Teaser for Scout Motors electrical SUV and pickup truck

The IRA incentive guidelines have additionally seemingly 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 probably parts equivalent to motors, within the second half of the last decade.

VW additionally not too long ago introduced a South Carolina plant for its Scout model, which is unrelated to the VW model within the U.S. however would seemingly faucet into the identical battery assets. Positioned close to the state capital of Columbia, the Scout manufacturing facility is scheduled to begin producing automobiles in 2026, with an annual manufacturing capability of 200,000 automobiles at full quantity. The primary Scout mannequin can be a $40,000 electrical SUV, adopted by a considerably pricier electrical pickup. Each fashions are as a consequence of be unveiled in 2024.