Volkswagen AG says it has started searching in Canada for the site of its first battery factory in North America.
The automotive giant says its chief executive Oliver Blume has signed an agreement with Industry Minister François-Philippe Champagne to work to identify suitable sites.
The agreement comes as an addition to an August memorandum of understanding between the two that committed to investigate opportunities for Canada to contribute to VW's battery supply chains, including in raw materials and battery assembly.
Blume says the North American electric vehicle market is at a turning point, and the company is committed to investing across the region to leverage this historic opportunity.
The company says that as part of its site search it is looking not only for suitable land and infrastructure, but also adequate supplies of renewable energy and competitive financial conditions.
Canada has seen at least 10 major electric vehicle-related commitments totalling close to $16 billion since the start of 2021 as federal and provincial governments work to secure investments in the rapidly-evolving sector.