Volkswagen to Establish $7 Billion EV Battery Plant in Ontario
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Volkswagen to Establish $7 Billion EV Battery Plant in Ontario

Volkswagen Battery Plant
  • Volkswagen invests $7 billion investment in St. Thomas, Ontario, to establish its first overseas electric vehicle battery plant.
  • The plant will create up to 3,000 direct jobs and up to 30,000 indirect jobs.
  • The investment aligns with Canada and Ontario’s goals of transitioning to a low-carbon economy.

This historic move signals confidence in Canada’s electric vehicle (EV) market as Volkswagen plans to establish a $7 billion electric vehicle battery manufacturing plant in St. Thomas, Ontario. This investment represents the largest EV investment in Canadian history.

Prime Minister of Canada Justin Trudeau praised the plans, saying: “When we talk about our made-in-Canada plan, we’re talking about creating good, middle-class jobs now and into the future, we’re talking about clean air for our kids and grandkids, and we’re talking about a strong economy that works for all Canadians. That’s what Volkswagen’s new electric vehicle battery plant in St. Thomas – the largest manufacturing plant in the country once built – is all about. It’s a win for workers, for the community, and for the economy.”

Creating Jobs and Bolstering Domestic Battery Manufacturing

The new Volkswagen plant will generate up to 3,000 direct jobs as well as up to 30,000 indirect jobs, making a significant impact on St. Thomas area and the entire EV supply chain in Canada. 

With completion expected in 2027, the plant will be able to produce batteries for up to one million electric vehicles each year. This solidifies Canada’s domestic battery manufacturing capabilities to meet the growing demand for electric vehicles. 

Government Support and Infrastructure Investment

In addition to direct incentives of $500 million provided by the Ontario government, substantial investments will be made in infrastructure projects across the region, including road and highway improvements, utility services enhancements, and police and fire services support. These efforts aim to strengthen the local communities and foster sustainable growth.

Ontario Premier Doug Ford joined the Prime Minister in support of the plans, he said: “This investment, the largest auto investment in our province’s history, is a big win for Ontario, the people of St. Thomas and surrounding areas. We’re thrilled to welcome Volkswagen and PowerCo SE to Ontario and thank them for their tremendous confidence in our province, our workers and our growing electric vehicle supply chain. Welcome to Team Ontario, Volkswagen!”


Positioning Canada as a Leader in Electric Vehicles

Canada has attracted significant investment in the electric vehicle sector, solidifying its position as a clear player in the global market. The country’s resources and skilled workforce make it an ideal destination for manufacturers. The investments not only create jobs but also drive progress toward a cleaner and more sustainable future.

With this investment, Volkswagen shows its commitment to expanding its presence in North America. The establishment of the St. Thomas plant represents an important milestone in the brand’s global battery strategy.

Canada and Ontario’s collaborative efforts to attract major investments in the electric vehicle sector are expected to accelerate the country’s transition to a low-carbon economy. With its ambitious 2030 Emissions Reduction Plan and a target of 100% zero-emission vehicle sales by 2035, Canada aims to significantly reduce greenhouse gas emissions and drive sustainable transportation. 

The Volkswagen investment in St. Thomas, Ontario represents a step toward realizing Canada’s vision of a greener future powered by electric vehicles. The positive impact of this investment extends beyond the immediate job creation and economic growth, as it contributes to the country’s broader efforts to combat climate change and build a sustainable transportation system.


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