Canada offers access to raw materials and clean energy.
Volkswagen AG has decided to construct its first battery facility outside of Europe in Canada to hasten growth in the crucial American market.
Plant in Ontario, due to start production in 2027.
In light of the generous incentives being provided in the US under the Inflation Reduction Act, which will aid Volkswagen in gaining access to necessary raw materials and sustainable energy, the business decided to establish a factory in Canada.
By introducing numerous new models, the business hopes to expand its market share in the US and lessen its reliance on China, where it currently sells just under 40% of its vehicles.
“We now have a special chance to expand successfully in North America and play a significant part in the shift to electric transportation.” According to VW CFO Arno Antlitz, Volkswagen has the proper strategy, products, and size to succeed in the North American market.