Volkswagen Group’s choice of Ontario for a new battery cell manufacturing plant puts Canada in contention to land an additional auto assembly operation, as the German automaker’s luxury brand Audi weighs establishing a new North American site to build electric vehicles, auto analysts say.
A Canadian assembly plant to complement the planned battery site in St. Thomas, Ont., “is a real possibility,” said Conrad Layson, senior alternative-propulsion analyst at U.S.-based forecasting firm AutoForecast Solutions.
“It puts the Audi production line very close to the PowerCo facility … and there are benefits to that.”
Because battery cells do not travel well, minimizing the distance between battery and vehicle production cuts down on cell scrappage, Layson added.
“These things are electrochemical reactions, even in their lowest charge state during transport. It’s almost like transporting live animals. Some of them don’t make it.”
Volkswagen and i…