The Volkswagen Group and its battery company, PowerCo, selected St. Thomas in Ontario, Canada, as the site of its first overseas gigafactory for battery cell manufacturing. Start of production is planned for 2027.

This will be the third group-owned plant worldwide and PowerCo’s first cell factory in North America. It will equip the brand’s BEVs in the region with battery cells. While PowerCo is set to play a key role in the development of the battery value stream in North America, Canada offers a local supply of raw materials and wide access to clean electricity.

The Volkswagen Group plans to introduce more than 25 new BEV models through 2030 in North America. In addition to its ramped-up assembly of the all-electric ID.4 compact SUV in Chattanooga, Tenn., the company also has plans to upgrade its plants in Puebla and Silao, Mexico, for the assembly of BEVs and potentially for BEV components such as electric motors in the second half of the decade.