$13 BILLION EV BATTERY GIGAFACTORY
The Canadian Government Validates the Need for EV Battery Manufacturing in Canada by Awarding a $13 billion Contract to Volkswagen
Volkswagen has secured an exclusive contract with Canada worth over $13 billion for the next 10 years to construct an electric-vehicle battery plant in southwestern Ontario. François-Philippe Champagne, Industry Minister, called it a “game changer.” The plant will be operated by Volkswagen’s battery company PowerCo and marks the first manufacturing presence in Canada for the world’s largest automaker. The contract includes an upfront capital investment of $700 million and up to $13 billion in production subsidies for every battery the company sells. The subsidies are designed to match what Volkswagen could have received if it had chosen a site in the United States to build its new plant.