Canada offers more than C$13 billion for the VW battery plant

Image Source: finance.yahoo.com

Canada has agreed to offer up to C$13 billion ($9.7 billion) in subsidies and a C$700 million grant to entice Volkswagen AG to locate its North American battery production in the nation.

The subsidies will be paid out over a ten-year period, but the automaker chose not to respond.

The plant’s construction will cost roughly C$7 billion.

The brand-new Volkswagen battery plant in Canada is expected to have a maximal capacity of 90-gigawatt hours.

The contract is drafted in such a way that Canada’s production subsidies are only guaranteed for the duration of the Inflation Reduction Act.

Canada’s incentives for clean production will decrease proportionately if those in the US are cut.

Canada is providing Volkswagen with capital expense grants totaling nearly C$700 million.

By 2030, PowerCo, which was founded last year, wants to have annual sales of over $21.94 billion.

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