Volkswagen, a German-based automaker, has signed a memorandum of understanding with the Canadian government for the development of its electric vehicle battery manufacturing to Canada.
Reporting from The Verge, Wednesday (08/24/2022) VW said that it plans to build a “special gigafactory” in Canada.
The automaker tasked its battery supply management company, Power Co., with spearheading a site search and source of key materials for EV batteries, such as nickel, cobalt and lithium.
“Power Co will also play a key role in cathode production in North America,” Volkswagen said.
Last year, VW unveiled plans to build six battery cell production plants in Europe by 2030, including facilities in Salzgitter, Germany, and in Skellefte, Sweden.
A third plant will be set up in Valencia, Spain, and a fourth plant will be based in Eastern Europe. The plant will have a production capacity of 240 gigawatt-hours per year.
Meanwhile, the inflation-reducing law, signed by US President Joe Biden earlier this month, has amended the electric vehicle tax credit by adding strict new requirements on parts and supply chains.
To be eligible, electric vehicles must be assembled in North America or by a U.S. trading partner and must include battery components sourced mostly in North America.
On the other hand, VW has recently started production of its flagship electric vehicle, the ID.4 crossover SUV, at the factory in Chattanooga, United States.
The ID.4 is Volkswagen’s most popular electric vehicle, and the company has delivered 190,000 vehicles to customers globally since its release in 2021.
Tesla in talks with Ontario Government to set up a Gigafactory in Canada
