Canada chosen for first Volkswagen EV battery plant in North America
Volkswagen is building an electric vehicle battery plant in southwestern Ontario, the carmaker said Monday, an announcement heralded by the province's economic development minister as an illustration of Canada's rapid reversal of fortunes in the growing sector.
The European automaker announced that the Volkswagen Group and its battery company PowerCo will establish its first overseas "gigafactory" for battery cell manufacturing in St. Thomas, Ont., with the start of production planned for 2027.
The company said Canada offers ideal conditions, including a local supply of raw materials and wide access to clean electricity.
"Canada and Ontario are perfect partners for scaling up our battery business and green economy jobs, as we share the same values of sustainability, responsibility and co-operation," Thomas Schmall, chairman of the supervisory board of PowerCo SE said in a statement.
"We are committed to be a reliable partner and good neighbour for the people in St. Thomas and Ontario."
Ontario Economic Development Minister Vic Fedeli said Canada has gone from being behind the pack in the electric vehicle manufacturing sector to being one of the top players in the battery supply chain remarkably quickly.
"(It) is a stunning move, and I think acknowledged by Volkswagen that they felt they would want to be in the middle of this whole electric battery ecosystem that we've created in Ontario," Fedeli said in an interview.
This will be the second electric vehicle battery factory in Ontario. Last year, automaker Stellantis and South Korean battery-maker LG Energy solution are building a facility in Windsor, Ont., with a $5-billion price tag.
Numbers such as the money being invested and jobs being created will be disclosed at a future announcement with Volkswagen representatives, Fedeli said.
Since 2020, Canada and Ontario have attracted more than $17 billion in investments in the quickly growing field.
Fedeli and federal Industry Minister Francois-Philippe Champagne said in a joint statement that the announcement is a "major vote of confidence" in Canada and Ontario being global leaders in the EV supply chain.
"With a highly skilled workforce, clean energy, an abundance of critical minerals, access to markets, and a flourishing automotive and battery sector, we are an attractive investment destination with everything companies need to grow," the ministers wrote.
"This investment is another significant step forward as we build a clean transportation sector to meet global and North American demand for zero-emission vehicles."
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 Volkswagen announcement, introducing and quickly passing a law adjusting the municipal boundaries for a 1,500-acre "mega site" in southwestern Ontario.
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.
Flavio Volpe, president of the Automotive Parts Manufacturers' Association, credited Monday's announcement to hard work by both levels of government.
"Canada now boasts major investments in electric vehicle manufacturing from six of the world's top seven automakers," he said in an interview.
"For a country without its own domestic brands, it is unprecedented and speaks to the globally competitive value proposition of investing billions here."
This report by The Canadian Press was first published March 13, 2023.
CTVNews.ca Top Stories
Federal budget to include grocery rebate for lower income Canadians: sources
The 2023 federal budget will include a one-time "grocery rebate" for Canadians with lower incomes who may be struggling with the rising cost of food, CTV News has confirmed.

3 children, 3 adults fatally shot at Nashville grade school
A female shooter wielding two 'assault-style' rifles and a pistol killed three students and three adults at a private Christian school in Nashville on Monday, authorities said. The suspect also died after being shot by police.
Sask. judge grants bail for sisters who say they were wrongfully imprisoned for nearly 30 years
A Saskatchewan judge has granted bail to two sisters who have spent nearly 30 years in prison for what they say are wrongful murder convictions.
MP Han Dong threatens legal action against Global over foreign interference report
Han Dong is threatening legal action against Global News and its parent company Corus Entertainment after the media outlet published an allegation the Toronto MP spoke to a Chinese diplomat about delaying the release of two Canadians.
'Sudden and devastating' Calgary house explosion injures 10 people
The Calgary Fire Department says at least 10 people were injured in a 'sudden and devastating' explosion in the city's northeast on Monday that completely destroyed one home.
These 3 items could cost you more starting this April
Whether it's gas, food or booze, consumers can expect to pay more for these goods next month. Two of the biggest changes include the federal carbon tax will increase to $65 per tonne of greenhouse emissions, up from $50, and the federal beverage alcohol duty that will increase by 6.3 per cent, which both come into effect on April 1.
Advocate questions whether Air Canada has 'cultural problem' after issue with teen's wheelchair
Flying over the Grand Canyon was a highlight for the Gellisen family during their trip to Phoenix, but their flight home to Toronto was a much different experience, with several family members forced off of the flight over tensions related to a teen's wheelchair.
'Rigorous' cost management needed as $5B Centre Block renovation proceeds: AG report
Despite delayed decision-making by parliamentarians, Canada's massive renovation of Parliament Hill's Centre Block is being effectively managed so far, according to a new audit. However, 'rigorous' cost management will be needed as the work proceeds, cautions auditor general Karen Hogan.
Quebec girl, 9, dies after snow fort collapses behind residence
A nine-year-old girl has died after a snow fort collapsed in a forest behind a rural Quebec home.
W5 HIGHLIGHTS
W5 | Comedian Russell Peters doesn't pull punches in climate of 'cancel culture,' 'political correctness'
CTV W5 speaks with members of the comedy industry, including Russell Peters, for a wide-ranging look at how political correctness and 'cancel culture' has changed the world of stand-up comedy.

W5 Investigates | 'Canadians should be very concerned about their drinking water': W5 investigates asbestos cement pipes
W5 investigates aging asbestos pipes across Canada and the potential health hazards if it ends up in your tap water. Watch W5's 'Something in the Water' on CTVNews.ca and W5's official YouTube channel.

W5 EXCLUSIVE | New police force should be appointed to take over investigation into death of teenaged hockey player, complaint says
An Ontario couple has filed a request with the Office of the Independent Police Review Director (OIPRD) to appoint a new police force to investigate the death of their 17-year-old son Benjamin, who died during a hockey team-bonding event in September 2019.

W5 Investigates | How did a healthy teen die at a minor hockey camp?
The parents of young Ontario hockey player Ben Teague have been searching for answers since he died while at a team retreat in 2019. The mystery about what happened and the code of silence in hockey culture is explored in CTV W5's 'What Happened to Ben,' on CTVNews.ca and W5's official YouTube channel.
W5 | Parents of young player who died struggle to find answers within hockey's code of silence
The parents of young Ontario hockey player Ben Teague have been searching for answers since he died while at a team retreat in 2019. The mystery about what happened and the code of silence in hockey culture is explored in 'What Happened to Ben' on CTV W5.
W5 | 'So disturbing': Pivot Airlines crew shocked RCMP aware of possible cocaine shipment prior to Dominican bust
The RCMP knew about a potential cocaine shipment from the Dominican Republic to Toronto aboard a Canadian charter flight but inexplicably allowed the crew that discovered and reported the drugs to be detained for months without intervening, a W5 investigation has revealed.
W5 Investigates | Pivot Airlines crew seeking justice after 'cocaine cargo' detainment
CTV W5 investigates what authorities knew about plans to smuggle cocaine out of the Dominican Republic on a Toronto-bound Pivot Airlines flight. The airline's crew is demanding justice following their eight-month detention.
W5 | Divorcing Canadian couples spending thousands on pet custody court battles
Pet custody cases are on the rise in Canada as judges decide who gets the dog or cat after a divorce.