Volkswagen Delays Opening of $7 Billion EV Battery Plant in Ontario to 2029
PowerCo Canada has postponed the launch of its electric vehicle battery facility in St. Thomas, Ontario, by two years to 2029 to incorporate next-generation technology and align with market demands.
Volkswagen’s subsidiary PowerCo Canada has announced a two-year delay in the opening of its $7 billion electric vehicle (EV) battery plant in St. Thomas, Ontario. The new target date for production is now set for 2029.
The company stated that the decision to postpone the launch is intended to align the project with evolving market demand, technological advancements, and Volkswagen Group’s long-term strategy. According to PowerCo, the later opening date will allow for the implementation of next-generation battery technology at the facility.
Joel Karlsberg, chief procurement officer for PowerCo, said the move protects long-term investment and supports regional jobs. The federal government previously committed $700 million and the Ontario government committed $500 million in upfront capital costs for the factory.
In addition to the schedule change, PowerCo announced that Canadian construction firm EllisDon Corp. has been selected as the general contractor for the factory's core infrastructure phase.
