Volkswagen has formally chosen St. Thomas, Ontario, as the house for its first North American EV battery cell plant Monday, after revealing its rugged electrical SUV and pickup line Scout will construct EVs in South Carolina. The initiatives are a part of the the VW Group’s broader North American EV technique.
Shortly after the Inflation Discount Act was handed within the US final August, VW was amongst a number of international automakers seeking to construct and assemble EVs within the US to benefit from the brand new tax credit.
Volkswagen joined fellow German automaker Mercedes-Benz in signing a memorandum of understanding (MOU) to safe important assets resembling lithium, nickel, and cobalt for EV battery cells within the raw-material-rich nation.
The corporate stated it could start accelerating manufacturing by its PowerCo enterprise within the US with “dependable and sustainable provide chains.” VW established PowerCo, a 100% owned subsidiary, in July 2022 to deal with the automaker’s battery operations. PowerCo, by VW, plans to open six EV battery cell crops with 240 GWh mixed capability by 2030.
The primary PowerCo battery cell plant will probably be in Salzgitter, Germany, with manufacturing deliberate for 2025, whereas the second is deliberate for Valencia, Spain. Though a 3rd gigafactory was initially anticipated in Europe, Volkswagen not too long ago shifted its plans, prioritizing a North American plant to benefit from incentives from the IRA invoice.
VW selects Canada for its new EV battery cell plant
In keeping with VW’s press launch Monday, Ontario provides the perfect circumstances for its first PowerCo battery cell plant exterior of Europe together with considerable uncooked supplies and entry to scrub power.
The corporate says that the manufacturing facility will equip VW Group EVs with sustainable unified cells and that manufacturing is predicted to start in 2027. The choice comes shortly after VW chosen South Carolina to construct its Scout model rugged SUV and pickup EVs.
Volkswagen expects to provide over 200,000 Scout automobiles with manufacturing slated to start in 2026 (and we might also see Audi EVs produced on the website). Oliver Blume, CEO of Volkswagen Group, commented on the choice, saying:
With the choices for cell manufacturing in Canada and a Scout website in South Carolina we’re fast-forwarding the execution of our North American technique.
Blume says North America is a key a part of its 10-point technique unveiled final yr to speed up EV gross sales and profitability throughout its lineup. Volkswagen chosen North America over Europe for its third EV battery cell plant as a result of it believes it could declare upwards of $10 billion in subsidies and loans by the IRA invoice over the lifetime of the plant.
Particulars of the deliberate gigafactory are scarce, together with manufacturing capabilities, however VW says extra particulars on the St Thomas manufacturing facility will probably be revealed within the close to future.
Volkswagen is planning to introduce over 25 new electrical automobiles, together with the ID.4, by 2030. The automaker additionally plans to improve a number of crops in Mexico to assemble EVs and doubtlessly produce EV parts like electrical motors within the second half of the last decade.
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