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Volkswagen picks Ontario for first battery factory outside Europe

The facility in St. Thomas, Ont. is expected to begin production in 2027

Alicja Siekierska
·2 min read
In this Thursday, March 8, 2018 photo Volkswagen cars are pictured during a final quality control at the Volkswagen plant in Wolfsburg, Germany. Germany's Volkswagen, Europe's largest automaker, is warning the Trump administration's decision to impose tariffs on aluminum and steel imports from Canada, Mexico, and the European Union could start a trade war that no side would win. (AP Photo/Michael Sohn)
The Volkswagen Group has picked St. Thomas, Ont. for the site of its first battery cell factory outside of Europe as the carmaker's first ramps up expansion in North America. (AP Photo/Michael Sohn) (ASSOCIATED PRESS)

The Volkswagen Group has picked St. Thomas, Ont. for the site of its first battery cell factory outside of Europe, as the carmaker ramps up expansion in North America.

The German carmaker made the announcement Monday, with production expected to start in 2027.

"We now have the unique opportunity to grow profitably in North America and play a key role in driving the transition to electric mobility there," Volkswagen chief financial officer Arno Antlitz said in a statement.

"We will be able to address an even broader range of customers. Volkswagen has the right strategy, products and scale to take a strong position in the North American market."

Volkswagen previously signed a memorandum of understanding with the Canadian government to boost cooperation on the development of battery production, with a key focus on supplying minerals such as lithium, nickel and cobalt.