Volkswagen builds the battery plant in Canada or the US, so ID.4 buyers can get maximum subsidies

It is known that the Volkswagen Group is looking for a location to build a battery manufacturing plant in North America. The company’s CEO Oliver Bloom (Oliver Bloom) called Canada one of the logical options. The factory will produce batteries for ID.4 electric cars at the Volkswagen plant in Tennessee (USA).

Image Source: Volkswagen

Introducing the batteries in North America will allow the company to meet the requirements of the US Inflation Act to localize battery and electric vehicle production. Without it, U.S. electric vehicle buyers cannot qualify for U.S. federal government subsidies.

Volkswagen is investing heavily in the electrification of most of its brands, including Audi and Porsche. In particular, Volkswagen modernized a factory in Chattanooga (Tennessee) in the United States, which supports the production of electric vehicles. Additionally, the Volkswagen Group has announced plans to build a second facility in the US, which may include a battery factory.

Under current law, buyers of the ID.4 electric crossover are eligible for a federal tax credit of up to $7,500, but that number will be lower for many cars when new inflation-adjustment law requirements take effect next month. To maintain the tax credit, the purchased electric vehicle must be manufactured not only in the United States, but its battery components and/or major components must be in the United States or a US free trade partner country.