Volkswagen’s battery subsidiary, PowerCo, has reached a milestone in its venture to establish a battery cell factory in Canada. Following the completion of site preparations in St. Thomas, Ontario, PowerCo has officially founded its Canadian subsidiary, tasked with overseeing the construction and operation of the forthcoming battery plant.
Announced in April of this year, the 90 GWh factory is set to break ground next year after successfully completing the initial site preparation phase. Sebastian Wolf, Chief Production Officer at PowerCo, expressed confidence in the project’s progress, stating, “We are fully on track. Site preparation as the first phase of the St. Thomas Giga Cell Factory is complete.”
While the specific cell chemistry for the factory has not been disclosed, PowerCo mentions utilizing “a new technology designed for cost-efficient mass production.” The plant’s final expansion phase aims for a capacity of 90 GWh of Volkswagen unit cells annually. The prismatic cells produced at the facility feature a standardized external aluminum housing, allowing flexibility in adapting the cell chemistry based on models and applications.
The expansive factory, covering an area of approximately 150 hectares, is part of a broader industrial and supplier park spanning 600 hectares. This initiative stems from an agreement between Volkswagen and the Canadian government inked in August 2022, with the first cells expected to roll out in 2027.
In preparation for the upcoming groundbreaking ceremony, PowerCo has established an on-site office for its newly founded subsidiary, PowerCo Canada Inc. This entity will oversee all North American operations from St. Thomas. The subsidiary has already made local hires and entered into service contracts with organizations such as Hydro One, Turner & Townsend, and WSP.
Additionally, PowerCo Canada has collaborated with the Province of Ontario, the City of St. Thomas, and local colleges to equip Canadian workers with the necessary skills for the burgeoning battery industry. Mayor Joe Preston of the City of St. Thomas highlighted the significance of PowerCo’s investment, stating, “This investment by PowerCo is not only a game-changer for Ontario’s EV vision but also a huge boost to our community and the hardworking families that call St. Thomas and Elgin County home.”
