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.“
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).
This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.
Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:
- Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
- All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
- While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
- NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.
As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.
Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.
“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”
The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.
Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.
The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.
Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.
🚨 Tesla said this morning it will ramp up production at Gigafactory Berlin to a volume of 7,500 vehicles per week.
This is a 20 percent boost in production. Tesla will hire 1,000 new employees to help with the increase.$TSLA pic.twitter.com/kravKfRO5n
— TESLARATI (@Teslarati) June 25, 2026
Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.
Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.
In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.
This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.
Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.
Tesla is being sued by the family of the woman who was killed in a Texas crash involving a Model 3. The driver, who is also being sued, claimed the vehicle was operating on Autopilot mode, but Tesla executives have come out challenging that claim, stating that the driver of the vehicle overrode the system.
The lawsuit was filed by 76-year-old Martha Avila’s daughter and her husband, who allege a “design defect” involving a Tesla and a failure to warn. The suit alleges negligence against Tesla and the driver, Michael Butler.
Butler “stated he was operating with an automated driving assistance system engaged at the time of the crash,” the Harris County Sheriff’s Office said in a statement. He showed no signs of intoxication and was cooperative, the Sheriff’s Office said, according to NBC News.
Just after reports of the crash and numerous headlines that immediately blamed Tesla’s Autopilot suite, both Tesla CEO Elon Musk and Head of AI Ashok Elluswamy challenged that. Musk said the crash made “no sense” given that Tesla Autopilot and Full Self-Driving do not travel at the speeds the door cameras captured the car traveling at, which Tesla says was 73 MPH.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
Elluswamy also revealed that Tesla data showed Butler overrode the system by pressing the accelerator to 100%, and that the pedal was compressed fully even after the car had crashed. Tesla has not released this data to the public, likely because it is communicating with agencies like the NHTSA on an investigation.
The suit uses a Washington Post analysis of government data that “identified at least 17 fatal incidents linked to Tesla Autopilot.”
This is far from the first time an accident has been blamed on Autopilot. A fatal crash in Texas was blamed on Autopilot several years ago, but when Tesla released data to the NTSB, which was investigating the crash, Autopilot was not available where the crash occurred, and Autosteer was never enabled, meaning the car was manually controlled at the time of the accident.
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws… pic.twitter.com/XGD97NHVZ2
— TESLARATI (@Teslarati) March 18, 2026
More information on the accident will be released as Tesla works with agencies to find the cause of the crash. From personal experience, it is hard to imagine Tesla Autopilot or FSD operating in this manner. It drives sometimes too cautiously in residential areas in parking lots, at least in my experience. Speeding happens, but at this rate in this type of area, it is hard to believe.
We look forward to more details being released with time.
Tesla Cybercab stands to gain from new Trump autonomy rules
Tesla plans production boost at Giga Berlin following rebound in Europe
