German automaker Volkswagen Group is pushing ahead with ambitious electric vehicle (EV) plans in North America by building a Tesla-style gigafactory to manufacture cells. The firm working in partnership with PowerCo SE believes the expansion will create 3,000 highly-skilled jobs in St. Thomas, Ontario, the location for the new site.

VW says it will invest CAD 7 billion in the new plant and equipment until 2030, allowing it to expand its electric vehicle penetration in the Canadian and U.S. markets. Production capacity will exceed 90 GWh once it completes all investments.

Politicians quickly commented on the move. Prime Minister Justin Trudeau said, “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.”

The new plant is the centerpiece of VW’s ambitious growth strategy in North America. The St. Thomas facility will equip the automaker’s battery electric vehicles with next-generation cells for high-volume production. It hopes the batteries will make its cars more cost-competitive with gasoline and diesel alternatives and help it compete with market leaders in the space.

The cell factory will cover a 370-acre area – roughly the size of 220 soccer fields – while the entire facility spans over 1,500 acres. CO2-free energy will power the plant, helping to reduce carbon dioxide emissions embodied in the production of today’s current generation of electric vehicles.

Groundbreaking will commence in 2024, with the first cells running off the production line in 2027. The plant will form a critical part of the Canadian government’s plans to expand electric mobility across the country. VW will invest significantly in new charging infrastructure, enabling more Canadians to take part in the electric vehicle revolution.

The establishment of the plant secures Ontario as a global leader in electric car production. The territory is already home to more than 700 automotive companies and has the end-to-end infrastructure to support further battery electric vehicle development.

By 2030, VW expects to have the broadest portfolio of electric vehicles in Canada. Funding will facilitate the expansion of Electrify America’s coast-to-coast charging network and the development of a new electric Scout 2026, one of the automakers’ most iconic models.

CEO of PowerCo SE, Frank Blome, said, “We are honoured to partner with Canada, Ontario, and the City of St. Thomas to take the EV industry to a new level. PowerCo was founded in Europe to make a difference in the battery business, offering cutting-edge cell technology and sustainable manufacturing.” He also confirmed that the company shares the same values as Canadian people living locally.

If you want to test drive a VW car today, start by clicking on the button below.

Please Note: The details of this article were accurate at the time it was written. Manufacturers may change the details of any vehicle’s specifications at any time without notice.