Industry Department Official Won’t Say How Much Volkswagen Was Paid to Build EV Battery Plant in Ontario

The VW logo on the ID. Buzz, a fresh take on the iconic vehicle of the Volkswagen brand, during its world premiere in Paris on March 9, 2022. Benoit Tessier/Reuters

An Industry Department official has confirmed that the Liberal government paid subsidies to Volkswagen to build its first overseas electric vehicle (EV) battery cell plant in Ontario, but said the amount cannot yet be made public.

Sheryl Groeneweg, the Department of Industry’s director general of advanced manufacturing, recently told the House of Commons Standing Committee on Industry that she is aware of how much money Ottawa paid Volkswagen to incentivize building the plant in Canada, but would not reveal the amount, as first reported by Blacklock’s Reporter.

“That information is not yet public, so this is nothing I can communicate to you at this point,” she told the committee on March 29.

“Are you aware of the number but unable to give it to me?” asked Conservative MP Brad Vis.

“Yes,” replied Groeneweg.

Industry Minister François-Philippe Champagne announced on March 13 that Volkswagen’s subsidiary company PowerCo would be establishing the new plant in St. Thomas, Ont., in the near future.

Champagne called the move by Volkswagen a “testament to Canada’s strong and growing battery ecosystem and Ontario’s competitive business environment.”

“Today’s news is a major vote of confidence in Canada and Ontario,” he said.

However, Vis told the committee that he has heard speculation that the federal government may have paid Volkswagen up to $15 billion in subsidies as an incentive to build the plant in Ontario.

“I know that the government of Germany offered Volkswagen over $10 billion to have a lithium battery processing plant in that country,” Vis said. “We’re talking a lot of money here.”

Motion

Vis attempted to introduce a motion to have the Industry Department provide the committee with all documents regarding how much the federal government paid Volkswagen in subsidies.

However, he later dropped the motion and simply asked the department to provide the committee with all relevant information pertaining to the matter before its next meeting.

“I’m not asking for something theoretical,” Vis said. “The witness told this committee that she is in possession of the information that we are seeking, so it’s a very specific request.”

“I’m just looking for a number,” he added. “The number is, how much money did the Government of Canada give Volkswagen to build the battery plant?”

Liberal MP Joël Lightbound, the chair of the committee, said the department will provide the committee a written response with the requested information.

Volkswagen Group is Europe’s largest automaker and manages a portfolio of 10 companies that brought in a total of over $400 billion in revenue last year.

Champagne told the Commons on March 23 that Volkswagen’s decision to build a battery cell plant in Ontario represents the first time ever that Canada has brought a European manufacturer into the country.

“Canada can win big, and this is another example,” he said.