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Fortune

Christiaan Hetzner

U.S. loses out to Canada for VW’s billion-dollar battery factory site

Canada Powerco Tesla Inc. Volkswagen Oliver Blume United States

Volkswagen Group CEO Oliver Blume wants to narrow the large gap to Tesla. (Credit: Daniel Roland—AFP/Getty Images)

Resource-rich Canada beat out the United States as the site for Volkswagen’s first North American battery cell factory.

The group’s new subsidiary PowerCo plans to begin production of its high-volume “unified” cell in St. Thomas in the province of Ontario in 2027 as it seeks to narrow the gap with industry heavyweight Tesla.

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