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Volkswagen plans to build its largest factory to date in Canada.

Volkswagen plans to build its largest factory to date in Canada.

June 05 2023 AutoAubaine

While the United States remains the primary manufacturer of new vehicles in North America, Canada is also a preferred market for automakers due to its prolific mining industry and skilled workforce.

Volkswagen recently announced its collaboration with PowerCo SE and various levels of the Canadian government to build its largest factory to date in the country. The new Volkswagen plant will be located in Saint Thomas, Ontario.

The facility in Saint Thomas will produce numerous components used in the manufacturing of electric vehicle batteries. Overall, the German automaker's facilities are expected to maximize production to 90 gigawatt-hours through six production blocks. This capacity is sufficient to power over one million electric vehicles.

An XL-sized factory

While factories are generally large, Volkswagen will set records with its Saint Thomas plant, which will have an interior area equivalent to 210 football fields. Including the outdoor space, the plant will cover 850 football fields, which is over 1,700 acres.

The arrival of such a factory in Saint Thomas is excellent news as it will create around 3,000 jobs, not to mention the economic activity generated by the construction of the building itself. The Ontario government estimates that this new factory will create over 30,000 indirect jobs.

A 100% electric future

Like many other automakers, Volkswagen is heavily investing in electric technologies. The German manufacturer plans to launch 25 new electric models by 2030. In fact, its transition to electric vehicles is already well underway with models like the ID.4 and ID.Buzz in North America, as well as other models worldwide.

Why Canada?

The decision to install the new factory in Saint Thomas, Ontario, is not a random choice. The small Canadian town is located between Toronto and Detroit, making it conveniently positioned for exporting materials to the factories where Volkswagen's electric vehicles are assembled. Additionally, the proximity to mines where minerals used in battery production are extracted is another factor.

Volkswagen's investment in the new factory amounts to nearly 13 billion dollars, which is expected to generate economic benefits of over 200 billion according to the Ontario government. The Saint Thomas plant is projected to be operational by 2027.

Jean-Sébastien Poudrier

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