Volkswagen chooses Canada over Oklahoma for battery cell factory

Volkswagen Group announced Monday that it has chosen to open its first North American gigafactory to build battery cells in Canada.

The factory will be located in St. Thomas, Ontario.

According to a press release, the VW subsidiary called PowerCo SE will begin producing battery cells in Canada in 2027.

“Our North American strategy is a key priority in our 10-point-plan that we’ve laid out last year. With the decisions for cell production in Canada and a Scout site in South Carolina we’re fast-forwarding the execution of our North American strategy.” Volkswagen Group CEO Oliver Blume said.

Leaders in Canada called the decision a “major vote of confidence” in the country’s future as a leader in the electric vehicle industry.

State leaders in Oklahoma recently legislation aimed at attracting such businesses to the state.

Oklahoma Governor Kevin Stitt issued the following statement after VW’s announcement.

“There’s no doubt that today’s announcement was disappointing. We would have rather seen those thousands of jobs come to the U.S., specifically Oklahoma, than go across the border to Canada. That said, Oklahoma has never been in a position to compete with an entire country for a major project, but that’s exactly what we did and it’s a testament to the hard work of state leaders in the Legislature and the Commerce Department who are making Oklahoma the most business-friendly state in the nation. Now we are right back to work pursuing additional opportunities in the pipeline and will continue our critical efforts to help companies who are already in Oklahoma expand and grow. I remain committed and optimistic that if we continue to work together, Oklahoma will land one of these historic opportunities.”

—  Oklahoma Governor Kevin Stitt