Volkswagen to Build Battery Plant in Canada
Volkswagen has planned to build an electric battery plant in Ontario, Canada, Yahoo reports.
The plant will be located in St. Thomas, with construction projected to begin in 2024 and production up and running by 2027. It’s recently been revealed that the plant will be receiving CDN$13 billion (US$9.6 billion) in subsidies from the Canadian government over a period of 10 years.
Some have voiced disapproval over the subsidies, but Trudeau has argued it’s an investment in the local economy, providing 3,000 direct jobs and 30,000 indirect jobs and “good careers for years to come in St. Thomas and great middle-class jobs right across Ontario and the rest of Canada.”
The subsidies are meant to make up for the difference between what Volkswagen would have paid for a plant in the United States. They will be revoked, however, if “the U.S. supports within the Inflation Reduction Act are eliminated or phased down.”
A release from the Canadian government claims the plant will bring in CDN$200 billion (US$147.7 billion) of revenue. It will be the second factory in Ontario, the first being in Windsor, Ontario from Stellantis and LG Energy Solution.
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