Volkswagen on Monday chose Canada as the site for its first North American battery cell factory as the automaker with an assembly plant in Chattanooga continues to push its electric vehicle offensive.
The Volkswagen Group and its battery company PowerCo selected St. Thomas in Ontario, Canada, for the factory for cell manufacturing with the start of production in 2027, according to the company.
The decision to expand PowerCo cell production ramp-up from Europe to Canada is further proof of the ambitious growth strategy of the group in North America, VW said in a statement.
Oliver Blume, Volkswagen Group’s chief executive, said in the statement that with the cell production in Canada and the company recently picking a site in South Carolina to produce the new Scout EV line, “we’re fast-forwarding the execution of our North American strategy.”
“Our North American strategy is a key priority in our 10-point-plan that we’ve laid out last year,” he said.