© Reuters. VW will invest 5,170 million dollars in a battery plant in Canada
Toronto (Canada), Apr 21 (.).- Volkswagen (ETR:) (VW) announced this Friday that it will invest 5,170 million dollars to build its first battery plant outside Europe in Canada, at the same time that it will receive from the authorities Canadians up to $9.75 billion in subsidies over the next 10 years.
The plant, which will be located in the town of St. Thomas, some 200 kilometers southwest of Toronto, will create around 3,000 direct jobs and some 30,000 indirect ones, according to figures provided by the Canadian authorities.
The Canadian government said in a statement that it will provide between 8,000 and 13,200 million Canadian dollars (between 5,900 and 9,750 million US dollars) in subsidies, depending on production, to match the aid that the United States offers through the Reduction Act of inflation.
The aid will disappear in 2032, but the agreement establishes that it has the “flexibility” to be adjusted if the level of aid in the US changes.
VW will also receive C$500 million (US$370 million) in direct aid from local authorities, the Government of the Province of Ontario.
And Ontario will invest hundreds of millions of dollars in infrastructure improvements in the St. Thomas region.
When completed in 2027, the plant, which will be operated by PowerCo, a unit of VW, will have the capacity to make batteries for one million electric vehicles.
The Canadian government said the plant will generate an estimated value of C$200 billion (US$147,715) and will be Canada’s largest manufacturing facility.
Canada’s automotive industry directly and indirectly employs more than 500,000 workers, 100,000 of whom are located in the province of Ontario, and contributes C$16 billion (US$11.82 billion) to the country’s GDP. ) year.