Volkswagen Group is stepping up efforts to localize manufacturing in key markets by increasing its manufacturing footprint in North America.
The automaker on Monday introduced plans to construct its first battery plant on the continent, to be situated in Canada. The announcement comes simply weeks after VW Group introduced plans for a plant in South Carolina to construct rugged electrical autos for the newly established Scout model.
“With the choices for cell manufacturing in Canada and a Scout web site in South Carolina we’re fast-forwarding the execution of our North American technique,” Oliver Blume, VW Group’s CEO, mentioned in a press release.
VW Group additionally talked about entry to uncooked supplies and clear vitality as causes for choosing Canada for the battery plant.
Battery cell growth at Volkswagen Group plant in Salzgitter, Germany
The Canadian plant, which can be operated by VW Group’s PowerCo battery firm, can be situated in St. Thomas, Ontario, and is scheduled to start out manufacturing in 2027. The plant will initially construct battery cells that includes a standard design that can be utilized in roughly 80% of the automaker’s lineup. The automaker expects the widespread cell design to scale back battery prices by as a lot as 50% in comparison with present ranges.
The Canadian plant can be PowerCo’s first exterior of Europe. The battery firm final yr introduced plans for six battery vegetation in Europe alone, a few of them operated in partnership with rival battery firm Northvolt.
VW Group has extra growth plans for North America. The automaker on Monday additionally introduced plans to improve its vegetation in Puebla and Silao, Mexico, to prepared them for EV manufacturing and probably EV element manufacturing within the second half of the last decade. The automaker’s in-house software program division, Cariad, additionally established a U.S. hub with services in Seattle and Silicon Valley in early 2023.