Volkswagen AG Subsidiary, PowerCo SE, Invests In $7B EV Gigafactory In Canada
May 04, 2023 at 04:10 am EDT
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Bennett Jones is advising Volkswagen AG and its battery subsidiary, PowerCo SE, in the establishment of its first battery cell manufacturing plant in North America—and its first outside of Europe. The gigafactory will be built in St. Thomas, Ontario.
This is the largest automotive industry investment in Canadian history. Volkswagen is the first original equipment manufacturer to enter Canada's automotive manufacturing sector in 35 years, and the first European one to do so. It is a historic investment that will benefit Canadians for generations, and benefit the world in the transition to zero emission vehicles.
"PowerCo SE's gigafactory in St. Thomas is a monumental investment in Canadian industry and its technology is on the cutting-edge of EV battery production," says Hugh MacKinnon, Chairman and CEO of Bennett Jones. "It is a prime example of how Bennett Jones' market-leading expertise can help clients succeed with complex, global, industry-shaping investments."
Key figures on PowerCo SE's gigafactory in St. Thomas:
Capital investment: C$7 billion by 2030.
Size: The cell factory will cover an area of around 370 acres. The entire industrial park will be around 1,500 acres.
Annual production capacity: Up to 90 GWh in the final expansion phase.
Jobs: Up to 3,000 highly skilled jobs at the factory and tens of thousands more indirect jobs in the region.
More details on the gigafactory are available here.
An official ceremony was held today in St. Thomas with Frank Blome, CEO of PowerCo SE; Canada's Prime Minister Justin Trudeau; the Honourable François-Philippe Champagne, federal Minister of Innovation, Science and Industry; Ontario Premier Doug Ford; the Honourable Victor Fedeli, Ontario's Minister of Economic Development, Job Creation and Trade; the Mayor of St. Thomas, Joe Preston; and other PowerCo SE Board members and dignitaries.
The Bennett Jones team advising PowerCo SE is led by Michael Smith and Ian Michael, and includes Tyler McAuley, Jane Helmstadter, Leonard Griffiths, Sharon Singh, Jessica Horwitz, Andrew Jeanrie, Jason Roth and Philip Ward.
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Volkswagen AG is a Germany-based Company, which manufactures and sells vehicles. The Company operates through four segments: Passenger Cars, which covers the development of vehicles and engines, the production and sale of passenger cars, and the corresponding genuine parts business; Commercial vehicles, which comprises the development, production and sale of light commercial vehicles, trucks and buses, the genuine parts business and related services; Power Engineering, which consists of the development and production of diesel engines, turbo compressors, industrial turbines and chemical reactor systems, the production of gear units, propulsion components and testing systems, and Financial Services, which comprises dealer and customer financing, leasing, banking and insurance activities, fleet management and mobility services. It's brand portfolio includes Volkswagen, Audi, SEAT, SKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN.
VOLKSWAGEN AG 
