Volkswagen has secured an exclusive funding contract with the Canadian government to assist in their investment to build EV batteries in St. Thomas, Ontario.
According to reporting by the Toronto Star, the contract is worth more than $13 billion over the next ten years.
Per a federal government source, the contract will include an upfront capital investment of $700 million towards the new Volkswagen plant. In addition, Volkswagen has also secured federal subsidies worth up to $13 billion over the next ten years.
It is unclear what the subsidies are, nor if the Ontario provincial government is part of the package. If the province is not, we should expect a Provincial announcement from the Ford Government in the coming months.
Before the production plant announcement, it was known that the Federal and Provincial governments put money on the table to lure the German automaker to the province. However, the exact specifications were not known.
We should see more details soon as Canadian Industry Minister Francois-Philippe Champagne interviewed with Bloomberg News earlier today. During the interview, the Minister provided more information about the contract with Volkswagen, which the Canadian Press has verified.
This is a developing story; we will update our readers as soon as we know more.