Volkswagen confirmed in December it was looking for sites for a plant in Canada after it signed a memorandum of understanding with the country six months prior to secure access to key raw materials for batteries.
Canada, which is home to a large mining sector for minerals including lithium, nickel, and cobalt, is trying to woo companies involved in all levels of the EV supply chain via a multi-billion green technology fund to safeguard the future of its manufacturing heartland in Ontario as the world seeks to cut carbonCars with batteries from the plant will also qualify for thousands of dollars in subsidies under the U.S.
Volkswagen has long said it is working towards setting up regional supply chains in Europe, North America andfor EV production in light of high transport and logistic costs, supply chain risks and geopolitical tensions. It announced last week its Scout brand would build a $2 billion manufacturing plant near Columbia, South Carolina, forThe IRA gave the company an incentive to prioritize decisions on North American investments, it said last week, adding plans for battery plants in Europe were still in place but that it would wait to see whether the IRA spurred Europe to offer better incentives.