Volkswagen to Build First North American EV Battery Factory in Ontario

European automaker Volkswagen is planning to build an EV battery plant in Ontario, marking a significant move for the province’s labour market.

On Monday, the Ontario government announced that Volkswagen will start building a battery cell “gigafactory” in the city of St. Thomas, with full production expected to commence sometime in 2027. “I think that means a very large plant with a very large workforce,” said the city’s mayor Joe Preston, as cited by CBC News. “We’re already clearing the land and getting things ready for as fast as a construction that we can do.” 

The move is expected to bring upwards of 2,500 jobs directly related to battery manufacturing, and up to 7,500 indirect positions, added Automotive Parts Manufacturers’ Association (APMA) head Flavio Volpe. As such, the city of St. Thomas is expected to soon see an influx of growth, concentrated in new housing and a more robust supply chain to serve the battery plant.

Trillium Network for Advanced Manufacturing at Western University managing director Brendan Sweeney told CBC News that Volkswagen’s upcoming battery plant “is a vote of confidence in Ontario as a location for manufacturing and particularly southwestern Ontario, especially given that this is not an incumbent manufacturer making a new investment— this is a manufacturer that is quite new to Canada.” 

According to Sweeney, the plant will provide batteries for at least three other EV manufacturing facilities across North America, including a potential Audi plant as well as a Volkswagen EV plant in South Carolina.


Information for this briefing was found via CBC News and the sources mentioned or linked. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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