The Canadian government has that Volkswagen-Group promised billions in subsidies for its battery factory in the province of Ontario. Prime Minister Justin Trudeau (51) promised the Wolfsburg automaker up to 13.2 billion Canadian dollars (8.9 billion euros) in state funds over the next ten years. From the group’s first battery factory in North America Canada accordingly 3000 direct and up to 30,000 indirect new jobs.
It’s an “investment for a whole generation,” Trudeau said. “With this historic project, we’re bringing back not only manufacturing, but also a strong, thriving economy for this community and a national anchor for Canada’s electric vehicle supply chain.”
The group itself is planning investments of seven billion Canadian dollars (4.8 billion euros). The factory is to be built in St. Thomas between Toronto and the US metropolis of Detroit. Construction is scheduled to begin next year, with production scheduled to start in 2027. The plant was to be the group’s largest in the world. An annual production capacity of batteries for more than one million electric cars is apparently planned.
The massive public support for the automaker in Canada is in line with the incentives offered in the neighboring country by the US administration of President Joe Biden (80) promises to manufacturers of electric cars and other future technologies. Europe’s heads of state and government therefore fear that EU companies will migrate overseas.
Volkswagen is also building new battery plants in the European Union. The first plant is scheduled to open in Sweden this year, and another in 2025 in Salzgitter, Lower Saxony. The group wants to reduce its dependence on Asian producers.