Two year delay in EV battery plant construction “nothing but good news”: Ford government

On Thursday, PowerCo Canada, a subsidiary of German automaker Volkswagen, announced it would delay the production of a $7 billion electric vehicle battery factory in St. Thomas, Ontario. This two-year construction delay comes amid other electric vehicle manufacturing investments pulling out. Economic Development Minister Vic Fedeli, who crafted the EV strategy, called the delay "extremely exciting," highlighting that shovels are in the ground and a company has been awarded contracts for a $7 billion facility.

The facility is expected to open in 2029 as planned. Critics argue that other plants have followed a similar pattern, cancelling investments before completion. Liberal MPP Stephanie Smyth noted Honda, NextStar, Toyota, and General Motors received a combined $347 million in subsidies from 2025-26, with the city of St. Thomas receiving $65 million for infrastructure.

NDP Leader Marit Stiles called for greater transparency about the attached strings to taxpayer-funded projects. Fedeli emphasized that much of the promised provincial funding was contingent on future production, and expressed optimism about the state of Ontario's auto manufacturing sector, noting investments by Toyota, General Motors, and Stellantis.