News
Volkswagen Group chooses Canada for EV battery cell manufacturing
Volkswagen Group announced today it has chosen St. Thomas, Ontario, Canada, for its first-ever North American electric vehicle battery cell manufacturing gigafactory.
Volkswagen Group, along with its battery company PowerCo, selected the region for its production of sustainable unified cells and hopes to launch production in 2027, it said today.
The decision to expand outside of Europe and into North America helps further solidify the automaker’s plans to ramp up cell production and help support the growth of the company’s EV network in North America.
“Our North American strategy is a key priority in our 10-point-plan that we’ve laid out last year,” said Oliver Blume, CEO of the VW Group. “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.”
Why Canada?
PowerCo. chose to settle in Ontario because of its ideal conditions and VW Group’s plans to support its build-out of EVs with battery cells. PowerCo and Canadian Prime Minister Justin Trudeau agreed last year, as a Memorandum of Understanding (MOU) was crafted that focused on battery value creation and raw material security, two crucial pieces of cell manufacturing.
Canada offers a healthy supply of raw materials and wide access to clean energy, making it an ideal location for the PowerCo. factory.
North American Growth Strategy
VW Group wants to build out a full portfolio of EVs for the North American market, especially in the United States, it said. More than 25 new BEVs are set to be unveiled through 2030, and the North American market seems to be an ideal location for this growth.
“We now have the unique opportunity to grow profitably in North America and play a key role in driving the transition to electric mobility there,” COO and CFO for VW Group, Arno Antlitz, said. “Both new, major projects are integral building blocks of our ambitious growth program for the entire region. We will be able to address an even broader range of customers. Volkswagen has the right strategy, products, and scale to take a strong position in the North American market.”
Volkswagen has already ramped up the assembly of the ID.4 in Chattanooga, Tennessee, and also plans to upgrade two plants in Mexico to prime them for BEV manufacturing during the second half of the 2020s.
A Head of Steam for Scout
With Volkswagen’s plans to launch the iconic Scout brand in South Carolina, the new battery cell plans for Canada will also support this. Scout operates as an independent unit within the VW Group and will be developed on a new all-electric platform that is geared toward off-road capability.
Last week, Scout landed on South Carolina for its initial production phases, which are scheduled to begin by the end of 2026. The location was chosen due to its prowess as an automotive haven, with over 500 companies in the sector calling the state home.
Volkswagen’s Scout to build $40K electric SUV in South Carolina
Final Thoughts
The new battery cell plant is not only going to benefit the VW Group, but also the economy in Ontario, as the Honorable Vic Fedeli said, who is the region’s Minister of Economic Development, Job Creation, and Trade.
“This historic investment by Volkswagen and PowerCo SE is a massive vote of confidence in our plan to build and will strengthen our made-in-Ontario electric vehicle supply chain to create more good-paying jobs for workers in St. Thomas and across the province,” Fedeli said. “Whether it’s investing in clean steel or unlocking the economic potential of our critical minerals, our government is on a mission to create the right conditions for businesses and workers to succeed as we build the economy of the future. Thank you, Volkswagen, for choosing Ontario.“
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Elon Musk
Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence
The Tesla CEO shared his recent insights in a post on social media platform X.
Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk.
The Tesla CEO shared his recent insights in a post on social media platform X.
Musk details AI chip roadmap
In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle.
He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.
Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.
AI5 manufacturing takes shape
Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.
Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.
Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.
News
Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.
The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.
According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.
The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring.

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.
The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.
ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.
“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.
“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.
News
Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade
Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.
Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.
Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.
Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error.
More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report.
Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.
Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.
Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.
“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted.