Volkswagen has approved an EV slotting below the ID.4 for the North American market, and it’s considering a battery plant in Ontario, according to German business daily Handelsblatt.

The report notes five recent entries in the Canadian province’s Registry of Lobbyists for VW, including one that mentions CEO Oliver Blume, who last year said that Canada was a logical option for battery cell production.

The report also cited documents saying Ontario wanted to be “considered in competition with other locations” for the battery plant, and said the province had offered incentives to land the project.

As for the new sub-ID.4 EV, it could be assembled at VW’s existing Chattanooga, Tennessee plant, which currently builds U.S.-market ID.4 models, or the Puebla, Mexico, plant that handles a large share of VW’s North American production.

Volkswagen ID.Life concept

VW has written off the idea of another North American vehicle plant for now. The automaker’s new all-electric Scout brand, which was seeking factory sites, is now reportedly negotiating with contract manufacturers.

The newly approved model isn’t likely the ID.Life concept VW showed in 2021 as a possible affordable EV, but it’s likely to take full advantage of the mid-decade overhaul for VW’s MEB platform, which already underpins the ID.4 and the ID.Buzz van slated to reach the U.S. in 2024. The return of the VW e-Golf is also reportedly back on the table, although it’s unclear whether this is the same vehicle or not.