Volkswagen Eyes Canada for First North American Gigafactory
Volkswagen Group and its battery company PowerCo are searching for their first North American gigafactory location with eyes on Canada, according to a press release shared on Thursday.
The companies are in discussion with the Canadian government to help identify sites that would be suitable for cathode material production. PowerCo will also work with materials technology group Umicore on a strategic supply agreement for cathode material.
“Battery technology is key for our strategy — which is why we are forging ahead with the expansion of battery business at full speed,” Volkswagen CEO Oliver Blume said in the release.
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“Canada is one logical option for the construction of a gigafactory in the region of North America. The country offers high sustainability standards and ideal economic conditions and the government of Canada has already proven to be a strong and reliable partner. This is just the beginning: The EV market in North America is at a turning point and we’re committed to investing across the entire region to leverage this historic chance for Volkswagen and our customers.”
The news comes after Volkswagen and Canada signed a Memorandum of Understanding (MoU) surrounding the supply chain in August to help support the trade of tariff-free materials.