Volkswagen delays production at Ontario electric vehicle battery plant until 2029
SAINT THOMAS — The opening of a massive Volkswagen electric vehicle battery plant in southwestern Ontario has been pushed back two years until 2029.
The opening of a substantial Volkswagen electric vehicle battery plant in southwestern Ontario has been postponed by two years until 2029, according to PowerCo Canada, the company's Canadian subsidiary. This delay was made to align the project's timeline and product strategy with changing market demands, technological advancements, and the Volkswagen Group's long-term strategy.
The later opening date will allow for the introduction of next-generation battery technology while maintaining the flexibility to scale production over time as market conditions evolve. Joel Karlsberg, PowerCo's chief procurement officer, stated that this move is "about getting the pacing right … to protect our long-term investment (and) support regional jobs."
PowerCo also announced that Canadian construction firm EllisDon Corp. has been selected as the general contractor for the factory's construction, marking the company's entry into its next phase, which will primarily focus on core infrastructure and structural work. The announcement comes after the plant's initial unveiling in 2023, with the federal government committing $700 million in upfront capital costs for its construction, and Ontario contributing $500 million.
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