Industry Minister Francois-Philippe Champagne says the federal government's plans to provide approximately $13 billion in subsidies over the next decade, in order to see Volkswagen build its first overseas battery manufacturing plant in southwestern Ontario is "a very good investment."Speaking to reporters on Parliament Hill on Thursday, Champagne confirmed that the plant—slated to be larger than 390 football fields— will and cost $7 billion to build.
In mid-March, the German automaker said its subsidiary PowerCo had plans to establish an electric vehicle battery manufacturing "gigafactory" facility in St. Thomas, Ont., south of London.With production planned to start in 2027, the EV battery plant is expected to employ thousands of workers once fully operational, though Champagne pointed Thursday to the trickle-down job creation expected in southern Ontario as a result of the European car manufacturer setting up shop.
Champagne said Thursday that the contract will see Canada's subsidies continue so long as the IRA is in place. This comes after what the minister has said took months of deal-making that started with a phone call and a series of meetings where he and his officials made Canada's case.