The Volkswagen Group looks to Canada to build a battery factory

The ambitious plan of electrification of the Volkswagen Group provides for the construction of several battery factories, 6 of which in Europe alone. After all, in order to rapidly accelerate the production of electric cars, a large supply of accumulators is needed. The German group intends to build plants for the production of batteries also outside Europe.

The first of these plants should arise in Canada and will be used to supply the factories of the German group in North America with accumulators.

Apparently, the search for the exact place to build the factory has already begun. In fact, an agreement has been signed between the Volkswagen Group and the Canadian government to identify potential sites for such a factory. But the collaboration between the German Group and the Canadian Government goes further. Indeed, the parties will also work in other fields such as on raw material supply chains necessary for the production of battery cells. The new factory will be operated by PowerCo, the Volkswagen Group battery company founded in July 2022.

For Oliver Blume, CEO of the Volkswagen Group, Canada was chosen for a variety of reasons. In fact, the country, according to the CEO, “offers high standards of sustainability and ideal economic conditions and the Canadian Government has already proven to be a strong and reliable partner“.

More information will be shared as soon as the exact location to build this battery cell factory has been identified. Canada is becoming increasingly important for the battery market. Several car manufacturers are looking with interest at the deposits, present in the country, of the raw materials necessary for the production of the cells. Furthermore, we cannot fail to mention that LG Energy Solution and Stellantis will build a cell plant in Canada.

The news is not finished because PowerCo has made a new agreement with Umicore. The goal is to extend the current collaboration for the “development of regional supply chains related to sustainable battery materials“. The German Group therefore aims to ensure i necessary cathode materials for future cell production in North America.

We recall that these two companies already announced last September the establishment of a joint venture which will supply the fundamental materials for the production of battery cells at the European plants of the German group starting from 2025. The new agreement, therefore, will be fundamental for the future factory in Canada. A supply of cathode materials and related precursors is expected equal to volume up to 40 GWh per year in 2030. Deliveries are expected to begin in 2027. Umicore plans to start construction of a plant for the large-scale industrial production of cathode and precursor materials in Canada starting in 2023.