Germany’s Volkswagen Automobile Group has signed a contract with the Canadian government to find a site for its first North American battery cell plant in Canada.
The Federal Minister of Innovation, Science and Industry Philippe Champagne visited Germany earlier last month and signed the agreement to proceed.
Accordingly, the two sides will cooperate in various fields such as battery value creation, raw material supply chain, and cathode material production.
The actual work is carried out by Volkswagen’s battery subsidiary Powerco SE.
Ontario and Quebec are rich in hydroelectric power, making them suitable for producing batteries that consume large amounts of clean energy on a large scale.
Following Volkswagen, it is highly likely that several battery companies will open factories in Canada. South Korea’s LG Group is already building a plant in Windsor, Onju.