German Manager Magazine: Volkswagen builds battery cell plant in St. Thomas in Canada002366

“It’s a big step for Volkswagen. Congratulations to Canada,” said VW Chief Technology Officer Thomas Schmall (59) in Salzgitter. There the company presented the status of its plans. With the decision to locate the fourth European cell factory after northern Sweden, Salzgitter and Valencia in Spain VW, on the other hand, wants to take its time.

The start of production in St. Thomas – located about halfway between the Canadian metropolis of Toronto and the US car city of Detroit – is scheduled for 2027. Volkswagen recently announced a plant in the US state of South Carolina to build for his new pickup truck brand, Scout

. “With the decisions for cell production in Canada and for the Scout site, we are accelerating the implementation of our North America strategy,” said CEO Oliver Blume (54).

In Europe, VW is initially planning six factories for its own battery cells electric vehicles, also to become less dependent on Asian suppliers. Half of them have already been specifically decided. “Our three plants in Europe are now set until 2028,” said Schmall. However, the lead-up for new locations takes years. In addition, some economic conditions are uncertain. “Why should we rush now to decide on the next (factory) in the environment that we have now? It doesn’t make sense to come to a quick decision.”

Expansion plans for plants in Mexico

From 2025 at the earliest, details on the next European location can be expected. Among other things, Eastern European countries, but also other possible candidates in East Frisia or in Saxony, are hoping for the bid.

During a visit by Chancellor Olaf Scholz (64) to Canada the country came into discussion for North America because VW also wants to participate in projects there to mine battery raw materials. Schmall initially reported on Monday that the preparations for a cell plant were “finalizing the settlement decision”. By 2030, the demand for electrical energy for battery cells in electric cars in North America is estimated at 60 to 100 gigawatt hours.

In Mexico, the largest European car group also has plans. The plants in Puebla and Silao are to be expanded in order to assemble electric cars and “possibly also components such as electric motors” in the second half of the decade. The ID.4 will soon also be manufactured at the US vehicle plant in Chattanooga (Tennessee).

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