Manufacture of batteries for electric vehicles | Volkswagen starts shopping in Canada

Volkswagen is preparing the ground for what could become the second electric vehicle battery plant built in Canada. The German multinational begins to look for a place that could host its project.

This process takes the form of a non-binding agreement with the Trudeau government. It was announced Thursday when the Federal Minister for Innovation, Science and Industry, François-Philippe Champagne, was in Germany, in particular to meet the board of directors of the car manufacturer in the during a trip to Europe.

The steps to identify the site will be carried out by the subsidiary of Volkswagen (PowerCo) which specializes in the battery niche. Negotiations should begin soon, according to the company.

“Canada is a logical option for building a North American plant,” said Volkswagen CEO Oliver Blume. The country offers ideal economic conditions and the Government of Canada has already proven itself to be a solid and reliable partner. »

If the plant is built, it would be the first of its kind operated by Volkswagen outside the European continent. It remains to be seen which province could host the eventual complex. The automaker refrained from sending signals on this subject on Thursday.

“Good relations” with Ontario

Ontario was the first province to welcome such an investment. Last March, Stellantis and LG announced a $5 billion plant in the Windsor area. Sign that the steps are in their infancy, the name of Volkswagen does not appear in the registers of lobbyists in Quebec and Ontario.

However, there is a strand in Volkswagen’s announcement surrounding the sourcing of cathode materials – a neuralgic component of the lithium-ion battery – with Umicore, which announced the construction of a $1.5 billion factory in Kingston in July. last.

Ontario has a very good relationship with the manufacturer due to the importance of the automotive sector in the province. Also, the Ford government will certainly want to make significant efforts to ensure that Volkswagen chooses its province.

“Ontario has a good relationship with the company,” noted a government source in Ottawa, who is not authorized to speak publicly.

In Quebec, the Legault government has not commented on Volkswagen’s announcement, but provincial officials say they are talking to all players in the automotive sector about the battery industry.

The Canadian ambitions of the multinational based in Wolfsburg come only a few months after the signing of an agreement with Ottawa, last August, regarding access to critical minerals (lithium, nickel and cobalt).

With the collaboration of Joël-Denis Bellavance, The Press