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Quebec seems out of operating for Volkswagen battery cell plantBy Bhagyashree SoniJanuary 27, 2023Updated:January 27, 20234 Mins Read
Quebec seems to be out of the operating for Volkswagen Group’s deliberate North American battery cell manufacturing plant, in line with Pierre Fitzgibbon, the province’s minister of financial system, innovation and power.
The German automaker and Quebec authorities have a operating dialogue on different future prospects, Fitzgibbon informed Automotive News Canada, however Volkswagen’s preliminary battery cell plant “is not on our radar right now.”
Volkswagen introduced it was scouting areas for the most important North American funding Dec. 1, singling out Canada as “one logical option” for the plant that can construct battery cells for the automaker’s North American-made electrical autos.
The firm didn’t disclose the place within the nation it was trying, however Ontario, with its automotive roots and fast-coalescing battery provide chain, in addition to Quebec, which is quickly to be residence to a collection of battery supplies vegetation and Canada’s solely operational lithium mine, had been seen as contenders.
Canada was the only real nation Volkswagen publicly disclosed in December as being on the shortlist for its deliberate North American cell plant, but it surely stated “other options” had been additionally being thought-about.
Volkswagen Group Canada spokesman Thomas Tetzlaff wouldn’t touch upon the state of the corporate’s cell plant website search, or present a timeline for when an announcement can be made.
But Canada stays within the race.
Laurie Bouchard, a spokeswoman for the federal division of innovation, science and financial improvement, confirmed Ottawa remains to be in discussions with Volkswagen. She wouldn’t elaborate additional.
All indicators level to Canada’s most populous province.
Vic Fedeli, Ontario minister of financial improvement, job creation and commerce, has been unwilling to debate the province’s talks with Volkswagen, however a December tweet, since deleted, exhibits he and Premier Doug Ford met with officers from the automaker and its battery subsidiary PowerCo SE as not too long ago as final month.
Documents filed between Jan. 4 and Jan. 13 with the Ontario Office of the Integrity Commissioner, which oversees lobbying within the province, say inner Volkswagen personnel and its consultants have met with a variety of ministries, in addition to the Independent Electricity System Operator, which manages the province’s energy grid.
Internal Volkswagen or PowerCo employees not too long ago registered as lobbyists in Ontario embody these with roles in location scouting, human sources, and civil and facility engineering.
Ontario’s ministry of financial improvement, job creation and commerce wouldn’t touch upon the talks.
Volkswagen is anticipated to announce a call comparatively quickly. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, informed Automotive News Canada in December he expects the corporate to announce the placement of its first North American battery cell plant within the first six months of 2023.
Quebec, meantime, isn’t abandoning its pursuit of different cell producers. Currently, Fitzgibbon stated, the province has two potential vegetation in its pipeline.
“They may not be signed short-term, but I’m confident that we will at one point get one.”
Fitzgibbon stated because the preliminary wave of battery vegetation rolled out throughout North America, Quebec’s distance from the United States’ automotive heartland seemingly served as a deterrent.
“The first cohort of cell plants have been announced close to the OEMs. It’s a natural reflex.”
But as automakers require increasingly battery cells, he expects the built-in internet of battery supplies vegetation coming collectively in Quebec, and the province’s clear, low-cost energy will draw automakers northeast.
“As we solidify the production of cathodes [and] anodes … this is 50 per cent of the value of a battery pack. So, we are at the right place to get that foundation built.”
Bécancour, Que., which sits on the south shore of the St. Lawrence River, halfway between Montreal and Quebec City, is poised to develop into residence to a collection of battery supplies vegetation.
Lithium, nickel and cobalt processors are weighing investments, whereas Nouveau Monde Graphite Inc., has already begun building on a plant within the metropolis.
Two cathode lively supplies (CAM) vegetation are additionally within the works. In March 2022, General Motors and Posco Chemical introduced plans for a $500 million CAM plant within the metropolis. German chemical firm BASF bought land in Bécancour for its personal plant the identical month.
Fitzgibbon stated the province is “working hard” to substantiate one more CAM producer for Quebec.