Volkswagen subsidiary delays opening of $7B St. Thomas, Ont., battery plant to 2029
PowerCo, the Volkswagen subsidiary building a $7-billion electric vehicle battery plant in St. Thomas, Ont., says the facility is now expected to begin operations in 2029, two years later than originally planned.
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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