Volkswagen and Canada to boost battery supply chain in North America

Volkswagen and the Government of Canada are to explore opportunities across the country’s battery supply chain to boost e-mobility.

The partnership was agreed through a Memorandum of Understanding (MoU) signed by Volkswagen CEO Herbert Diess and Canada’s Minister of Innovation, Science, and Industry, François-Philippe Champagne, in the presence of German Chancellor Olaf Scholz and Canadian Prime Minister Justin Trudeau.

Both parties will investigate opportunities for Canada to contribute to Volkswagen’s global and regional battery supply chains. PowerCo, the newly founded battery company of the Group, is responsible for all global Group activities along the battery value chain, securing battery cell supply for Volkswagen’s e-mobility push.

The plan is to quickly build up highly standardized cell production capacities totaling 240 gigawatt hours per year in Europe alone. In addition, there are plans to establish a dedicated gigafactory in North America. Possible production sites are currently being examined.

Dr. Herbert Diess, CEO of Volkswagen Group: “Volkswagen has been vigorously pushing the transformation to e-mobility, recognizing the industry‘s responsibility in the global battle against climate change. The Group today not only offers the broadest range of electric models to customers but is also rolling out an ambitious battery and charging strategy. Working hand in hand with governments around the world is an absolute prerequisite to meet our climate goals and I want to thank the Canadian government for their support.

“The supply of battery raw materials and the production of precursor and cathode materials with a low carbon footprint will allow for a fast and sustainable ramp- up of battery capacity — a key lever for our growth strategy in North America.“

The Volkswagen Group brands plan to offer the most comprehensive electric product portfolio in North America with more than 25 battery-electric models by the end of the decade; at the same time, strong regional capabilities for EV research and development, vehicle assembly, component production and supply relationships are being expanded across the North American continent.

“We’re committed to bringing electric mobility to consumers and communities in North America. Today’s agreement between the Volkswagen Group and the Government of Canada will enable us to work closely with local suppliers and expand our capabilities,” said Pablo Di Si, incoming President and CEO, Volkswagen Group of America, Inc. “We continue to invest in electrification with plans to launch more than 25 battery-electric vehicles planned by 2030. A broad-based supply of raw materials from across the region will be key to support our ambitious growth plans.”