Volkswagen and the Canadian government are teaming up to invest over C$20 billion ($14.8 billion) in a battery gigafactory located in St. Thomas, Ontario, marking the biggest-ever single investment in Canada’s electric-vehicle supply chain.
The German carmaker is committing up to C$7 billion to the project, while Canada’s federal government will provide C$13.2 billion in manufacturing tax credits through 2032, along with a C$700 million grant.
Ontario’s provincial government will also provide C$500 million in direct investment and infrastructure upgrades.
Prime Minister, Justin Trudeau said; “It’ll be worth over C$200 billion to the Canadian economy over the coming decades,” Prime Minister Justin Trudeau told reporters in St. Thomas, adding that it would be an “anchor for Canada’s electric vehicle supply chain.
“It will provide millions upon millions of batteries to power Canada’s auto industry … and the economic impact of this project will be equal to the value of government investment in less than five years.”
The battery plant is expected to be Volkswagen’s largest, creating up to 3,000 jobs, and will provide most of the battery capacity that Volkswagen needs in North America.
“It’ll be worth over C$200 billion to the Canadian economy over the coming decades,” said Trudeau.