Ottawa announced Monday noon in Montreal that Volkswagen will build its multi-billion dollar electric vehicle battery mega-factory in St. Thomas, Ontario.

Over the past two years, the Ontario government prides itself on attracting more than $13 billion in investment in the manufacture of electric vehicles and batteries like Honda, Toyota, Ford, General Motors, and Stellantis. It is only Volkswagen’s third battery mega-factory after those in Salzgitter, Germany, and Valencia, Spain.

The plant will be a joint venture between Volkswagen and Power Co, a new independent company created by the automaker to oversee its battery initiatives. Its value is estimated at 20 billion. According to François-Philippe Champagne, the arrival of Volkswagen in Ontario consolidates the battery sector and will bear fruit as far as Quebec.

According to the announcement, Volkswagen says the southern Ontario plant will begin producing in 2027 inside the company’s plan to introduce just over 25 new electric vehicles across the world by 2030. The plant is expected to be three million square feet on CBC News. St. Thomas plant is expected to be the size of 391 football fields and employs some 2,500 people.

Ready to start operations in the winter of 2024, it will have an annual capacity of at least 45 GWh, making it one of the largest battery factories in North America. This is the largest investment in Canadian history in the electric vehicle sector.

The federal gouvernment  offered 13 billion for Volkswagen  if we compare it to the province of Quebec, they invested 10 million only for the infrastructure which means they invested way more money for the batteries compare to the infrastructure. 

It is the job creation that results from this announcement.