Reuters reports that Volkswagen officials will invest 7 billion Canadian dollars, while Canada will provide the rest of the amount, 13.2 billion CAD in manufacturing tax credits through 2032.

The government of the Ontario region will also provide Volkswagen with 500 million Canadian dollars for the project, while an additional few hundreds of millions will be invested in upgrading the local infrastructure.

Canadian Prime Minister Justin Trudeau said that "it'll be worth over C$200 billion to the Canadian economy over the coming decades."

"It will provide millions upon millions of batteries to power Canada's auto industry ... and the economic impact of this project will be equal to the value of government investment in less than five years", he added.

The upcoming battery plant in Ontario is expected to be Volkswagen's largest of its kind and it will facilitate the creation of as many as 3.000 jobs, with the production possibly beginning in 2027.