Volkswagen picked a site near London, Ontario, for its first electric vehicle battery plant outside of Europe, part of a wider 193 billion U.S. dollars effort to boost VW’s standing in the electric vehicle market.
VW did not disclose the estimated value or location of its planned battery factory in St. Thomas, Ontario, about halfway between Toronto and Detroit. The plant is expected to begin production in 2027, according to the Germany-based car manufacturer.
Automakers and battery manufacturers are racing to develop new electric vehicle production facilities in the United States and Canada. General Motors, Ford, Toyota, Tesla and others are spending billions of dollars on facility construction, all aimed at the development of the electric vehicle market.
VW on Tuesday said it will spend $193 billion to accelerate the development of its electric vehicle lineup as well as to boost its market share in China. Most of the increased spending will be earmarked for electric vehicle development.
Earlier this month, VW announced a $2 billion plant near Columbia, South Carolina, to make Scout-branded electric SUVs. It’s also expanding its Chattanooga, Tennessee, factory to make the electric ID.4 model of SUVs.
VW also said Tuesday that it will expand its Electrify America subsidiary, one of the largest networks of electric vehicle charging stations in North America. The Biden administration is providing $7.5 billion to states to install more electric vehicle charging stations. Industry groups have said the U.S. must move faster on expanding its network of chargers.